Restore Regulatory News (RST)

26 Nov 2009 07:00



Mavinwood Plc

("Mavinwood" or the "Company")

ANSA Closing Balance Sheet Adjustment

Mavinwood announced the disposal of ANSA Holdings Limited, Independent Inspections Limited, and Home and Comforts Limited ("ANSA") on 9 June 2009 to a buyout vehicle backed by Lloyds TSB Development Capital Limited (the "Purchaser"). The sale was completed on 29 June 2009. The final purchase consideration was subject to adjustment dependent on the level of net debt and working capital in ANSA at completion.

The Company has now agreed the closing balance sheet position with the Purchaser and entered into a Settlement Agreement related to other matters in the Sale and Purchase Agreement This has resulted in a cash payment to the Purchaser of £205,000 in relation to the completion balance sheet. The Company has also paid £260,000 to re-acquire a loan note which was part of the assets sold. The directors of the Company believe that the value of the loan note is unlikely to be recovered in full. An additional cash payment of £130,000 will be made by the Company during 2010 as part of the Settlement Agreement. 

The escrow arrangements announced at the time of the ANSA disposal remain unchanged and are separate to the adjustments referred to above.