Sports Direct Regulatory News (SPD)

22 Jun 2005 16:20

SP Holdings PLC22 June 2005 SP HOLDINGS PLC ("SP HOLDINGS" OR "THE COMPANY") Appointment of Administrators and Announcement of Recent Transactions SP Holdings plc announces that it has, by reason of its financial position,resolved to appoint Brian James Hamblin and Stephen Paul Holgate, both of PKF(UK) LLP, to act as joint administrators of the Company. This follows theannouncement made on 31 May 2005, following which dealings in the Company'sshares were suspended on the Alternative Investment Market. On 17th June 2005, the Company disposed of its 51% interest in SP Middle EastWLL to Hallco 1170 Limited for a consideration of £1, conditional on the consentof the joint venture partner in Bahrain. Hallco 1170 Limited has also paid a feeof £20,000 in respect of an assignment of an inter-company debt owed by SPMiddle East WLL to the Company. The board of the Company decided to dispose ofthis business because the entry into administration would have voided the jointventure agreement. Tony Simpson, a director of the Company, had declared aninterest in the transaction as the purchaser intends to offer him employment. Also on 17th June 2005, the Company entered into a Termination and AssignmentAgreement with Manchester United Merchandising Limited ("MUML") under which theCompany agreed, in view of its current inability to fulfil the terms of theoriginal licence agreement between the parties and in full and final settlementof any and all claims under that licence, to pay to MUML the sum of £1,300,000. On 20th June 2005, the Company's subsidiary, SP Etail Limited ("SPE"), enteredinto a contract to sell its business and certain assets to Summercombe 149Limited ("SL") in consideration of the sum of £65,000. Simultaneously, theCompany, SPE, SL, Sports World International Limited and The FootballAssociation Limited ("FA") entered into a Novation Agreement to novate theoriginal Licence Agreement between the FA, the Company and SPE in favour of SL,and under which the Company was released from its surety obligations for thatlicence. At the time of this disposal, SPE had liabilities of approximately£250,000. Also on 20th June 2005, the Company disposed of its 100% holding in CleverTVLimited ("CTV") to CTV's managing director, Andrew Deeks, for a total maximumconsideration of £10,000, with the amount of consideration being conditional onthe happening of certain events. At the time of this disposal CTV hadliabilities in excess of £200,000 and the directors of the Company were unsureabout the renewal of major contracts. The Company's directors received independent professional advice on each of theabove transactions from PKF (UK) LLP. Further announcements will be made once the administrators have commenced theirreview of the financial state of the Company. The registered office of the company has been changed to Farringdon Place, 20Farringdon Road, London EC1M 3AP. For further information, contact: Brian Hamblin (PKF (UK) LLP: 020 7065 0000)Stephen Holgate (PKF (UK) LLP: 020 7065 0000) This information is provided by RNS The company news service from the London Stock Exchange