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23 Mar 2012 15:50
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FOR IMMEDIATE RELEASE 23 March 2012
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Managed Support Services plc
("MSS" or the "Group")
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Deferred consideration settlement
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TheΒ negotiations with Rentokil Initial plc in respect of the final deferred consideration receivable byΒ MSS in respect of the sale of the Group`s Building Services division ("the Division")Β 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.
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The Board regarded the process of arbitration as highly uncertain, whilst also incurring furtherΒ potentially material cost, as well as delay.
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TheΒ additional net proceedsΒ have fallenΒ 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 deferredΒ consideration.
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The Board will now make the final outstanding payments to the secured loan note holders and immediately thereafter willΒ consult with the Group`s few remaining creditors.
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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.
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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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