Last checked at 24 Nov 2008 14:15
24 November 2008
EuroTrust A/S ("EuroTrust" or the "Company")
SUSPENSION OF TRADING AND SUSPENSION OF PAYMENTS
On the 11th of November 2008 the Company announced that it was acting beyond the term of some of its existing debt facilities and was relying on informal extension arrangement with its creditors to allow the process of a capital raising and asset disposals to continue.Since that time the Company has made considerable progress in negotiating the terms of asset sales of its various wind assets, continued with its efforts to sell the Rømø Golf and Wellness Resort and, in parallel, continued to work with interested parties to seek to raise equity finance. Completing any of these initiatives would require time and accordingly the board sought to negotiate a formal extension of two months with all its creditors to allow management the time to progress these actions. The Board believed that by doing so it would be able to fulfil its obligation to repay its debts as they became due and to preserve some value for shareholders. While the majority of its creditors were supportive of this approach in principle, a junior creditor has indicated it is unwilling to support this process. Accordingly the board has no alternative but to file for Suspension of Payments for EuroTrust A/S in order to seek the court's protection while management continue their efforts together with an administrator appointed by the Danish court. Management will be able to continue to act on behalf of the Company, however, subject to the administrator's approval of material agreements and approval from the majority of all creditors of particularly material agreements or arrangements. As a general rule, the Company is not entitled to pay any debt related to the period prior to the Suspension of Payments.
This is an extremely disappointing development for investors and one which the Board feels is unnecessary and prejudicial to all stakeholders in the company. Nonetheless it is unavoidable and therefore the Board has requested, and the London Stock Exchange has confirmed, an immediate suspension in the trading of the Company's shares on the AIM Market of the London Stock Exchange
Due to these developments, the Company has also canceled its AGM which was due to take place on Thursday 27 November 2008.
Further announcements to shareholders will be made when appropriate.For further information please call EuroTrust A/S Robert Skjødt Tel: +45 7696 6090 END