2 Mar 2015 07:30
02 March 2015
Hightex Group plc
("Hightex" or the "Company")
COMMENCEMENT OF INSOLVENCY PROCEEDINGS
As announced in November 2014 Hightex GmbH, the Group's operating subsidiary, has been following a self-administered creditors' plan intended to facilitate the reorganization and restructuring of Hightex GmbH. These German proceedings are comparable to the chapter 11 procedure in the USA.
A decisive factor in the creation of this critical financial situation for Hightex GmbH was the misappropriation of funds totalling 3.3 million Euros by the managers of the Brazilian joint venture company in connection with the construction of two stadia for the FIFA 2014 World Cup. The consequential liquidity problems resulted in part from this misappropriation as well as from the failure to win any stadia contracts to date and in particular contracts in relation to the 2018 FIFA World Cup competition to be held in Russia.
On February 27th 2015 the Hightex GmbH creditors' committee, unanimously approved in principle an offer for Hightex GmbH made by an Austrian company. The results of the plan for the disposal of the GmbH will be submitted to the local court in Rosenheim, Bavaria, and, after confirmation by the court, the decision will be mandatory for all creditors.
The directors of Hightex Group plc regret that as a result of the information regarding the offer received on February 27th it is now clear that no funds from Hightex GmbH will flow to Hightex Group plc, which is therefore in a critical financial situation. The directors have concluded that an insolvency procedure should be commenced immediately and details will be confirmed as soon as practicable.
For further information contact:
Hightex Group plc | |
Charles DesForges, Non-Executive Chairman | Tel: +49 8051 6888 200 |
Frank Molter, Chief Executive Officer
| www.hightexworld.com |
ZAI Corporate Finance Ltd | |
Nominated Adviser and Broker Tom Price / Irina Lomova | Tel: +44 20 7060 2220 www.zaicf.com |