5 Dec 2008 15:58
EuroTrust A/S ("EuroTrust" or the "Company")
SITUATION UPDATE
On the 24th of November 2008 the Company announced that it had filed for Suspension of Payments for EuroTrust A/S and that EuroTrust's shares had been suspended from trading on the AIM Market of the London Stock Exchange.
At the time of the announcement, the Company remained hopeful that it would be able to dispose of the Rømø Golf and Wellness Resort ("Rømø") within the short term. Unfortunately, since that time, the potential buyer has had difficulties arranging the necessary funding for the transaction.
Combined with the delay of the disposal, the main financing bank for the Rømø resort has filed itself for Suspension of Payments and has called on the loan facilities to be repaid immediately. Consequently, the holding company of Rømø ("RGW A/S") now finds its self under severe financial constraints, and has insufficient cash resources to meet current and future financial obligations.
Therefore, given the uncertainty surrounding the disposal of Rømø and its deteriorating financial position, the board of EuroTrust has been left with no other option but to file for bankruptcy in respect of RGW A/S, which has today been approved by the Danish Court.
Whilst RGW A/S has filed for bankruptcy, the EuroTrust A/S group remains under Suspension of Payments and EuroTrust's management, together with the appointed Supervisor, continue to negotiate the terms surrounding the sale of the Company's wind power assets. However, the bankruptcy of RGW A/S will result in a default under its DKK383m financing facilities, which are guaranteed by EuroTrust A/S.
Further announcements to shareholders will be made when appropriate.For further information please call EuroTrust A/S Robert Skjødt Tel: +45 7696 6090 END