Logistics Dev Regulatory News (LDG)

8 Feb 2007 07:01

Legacy Distribution Group, Inc.08 February 2007 Legacy Distribution Group, Inc. (the "Company") This announcement is provided by way of an update to the announcement made on 31January 2007. The directors of the Company ("Directors") in conjunction with the Company'sprincipal bank, the lead creditor, have reviewed the Company's financialposition. They have concluded that the business is no longer viable and cannotbe sold as a going concern. The bank assisted by an officer of the Company hasreceived offers of interest to purchase the assets of the Company and the bankhas now commenced proceedings to exercise control over its collateral in orderto pursue these offers. Under this process, assets will be realised anddistributed for the benefit of the bank, as the leading secured creditor. The value of these offers will result in the bank incurring a substantial lossand as a result unsecured creditors and shareholders will not receive anypayment. In view of this action and after discussion(s) with the bank, the Directors haveconcluded that there is no further useful role that they can perform for andwithin the Company. Accordingly, Michael Mills and Ian Blelloch, theNon-Executive Directors and Fred Gretsch the Company's Chief Financial Officerhave resigned as Directors and Officer of the Company with immediate effect. This information is provided by RNS The company news service from the London Stock Exchange