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23 Mar 2012 15:50
FOR IMMEDIATE RELEASE 23 March 2012
Managed Support Services plc
("MSS" or the "Group")
Deferred consideration settlement
The negotiations with Rentokil Initial plc in respect of the final deferred consideration receivable by MSS in respect of the sale of the Group`s Building Services division ("the Division") in December 2011 have now been concluded. The deadline for agreement was 5 March 2012, absent which the parties would have appointed an independent arbitrator.
The Board regarded the process of arbitration as highly uncertain, whilst also incurring further potentially material cost, as well as delay.
The additional net proceeds have fallen far short of the Board`s expectations, primarily as a result of the unforeseen cancellation of one of the Division`s largest maintenance contracts just prior to the relevant deadline of 5 March 2012. This cancellation had the effect of materially reducing by far the most substantial element of the deferred consideration.
The Board will now make the final outstanding payments to the secured loan note holders and immediately thereafter will consult with the Group`s few remaining creditors.
However, in view of the above, the Board regards the equity value of the company to be negligible. Further announcements will be made in due course.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Managed Support Services plc: | |
Simon Beart, Chief Executive Piers Wilson, Finance Director | 07710 444370 020 7280 0953 |
Cenkos Securities plc: | |
Stephen Keys, Nicholas Wells | 020 7397 8000 |
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