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23 Dec 2010 07:00
23 December 2010
Speymill Deutsche Immobilien Company plc
("SDIC" or "the Company")
Update following Suspension
Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residential property investment company listed on AIM, announces that, following the suspension in trading as a result of the appointment of the receivers (the "Receivers") to the property holding companies ("SPVs"), its recently acquired property management subsidiary, GOAL service GmbH ("GOAL") has reached an understanding with newly appointed directors of the SPVs in respect of GOAL continuing to provide its services to the SPVs.
Furthermore, as part of the acquisition of GOAL and termination of the Investment Management Agreement, SDIC had issued convertible loan notes ("Loan Notes") to Speymill plc ("Speymill") in an aggregate amount of €2.088 million. The appointment of the Receivers constitutes an event of default under the terms of the Loan Notes and, therefore, the Loan Notes would ordinarily become immediately repayable, in cash. However, SDIC is currently in discussions with Speymill in order to arrive at a mutually acceptable remedy to the event of default. Further details of this will be announced in due course
David Humbles, Leonard O'Brien, Derek Butler and Anthony Baillieu have decided not to offer themselves for re-election at the Company's annual general meeting to be held today ("AGM") and have withdrawn their candidacy for re-election as directors of the Company. Vincent Campbell, SDIC's company secretary, will be appointed as a director immediately following the AGM.
The ongoing directors of SDIC will be actively seeking to put together a re-financing package to present to the lending banks and the Receivers in order to regain control of the SPVs with a view to re-building shareholder value. SDIC remains in contact with the lending banks in this regard. The Company's recently published annual report for the year ended 30 June 2010 reported total equity value of about €116 million and therefore the directors believe that there is substantial equity value attributable to SDIC through loans provided by SDIC to the SPVs.
Further announcements will be made in due course as matters develop.
For more information, please visit http://www.speymilldeutsche.com or contact:
SMP Partners Limited | +44 1624 682 216 |
(Administrator) | |
Vincent Campbell | |
Smith & Williamson Corporate Finance Limited | +44 20 7131 4000 |
(Nominated Adviser) | |
Azhic Basirov | |
Siobhan Sergeant | |
Fairfax I.S. PLC | +44 20 7598 5368 |
(Brokers) | |
James King | |
Gillian McCarthy | |
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