22 Dec 2014 17:11
22 December 2014
Eco City Vehicles PLC (in Administration)
("ECV" or "the Company")
Approval of Company Voluntary Agreement at General Meting of Shareholders and Meeting of Creditors
As previously announced, Kirstie Jane Provan and Mark Robert Fry of Begbies Traynor (Central) LLP were appointed as joint administrators of the Company on 17 October 2014 pursuant to paragraph 22 of Schedule B1 of the Insolvency Act 1986 (the "Administrators").
As announced on 1 December 2014, the Administrators convened meetings of creditors and shareholders for 22 December 2014 (the "Meetings") to allow creditors and shareholders to formally consider the proposals for a Company Voluntary Arrangement ("CVA").
The CVA Proposals were approved without amendment and by the requisite majorities at the Meetings.
As a result of those approvals, and following the Administrators filing notice of same with the Court, the Company has exited Administration and entered into a CVA. Management and control of the Company has been returned to the directors of the Company (the "Directors"). The former Administrators will continue in a different role as joint supervisors of the CVA (the "Supervisors") for the purpose of implementing the CVA.
There remains a 28 day period where a creditor seeking to challenge the CVA can do so by reason of an application to the Court under section 6 of the Insolvency Act 1986.
The Supervisors anticipate that the CVA process will be successfully concluded within the next 6 months.
The Directors will be despatching a circular letter to shareholders with recommended resolutions to enable the Company to be refinanced and restructured and this is expected to be posted on Tuesday 23 December.
Copies of the CVA proposals approved by both shareholders and creditors can be viewed at http://www.ecocityvehicles.com/
Enquiries:
Eco City Vehicles plc
John Swingewood, Director +44 1444 440 359
Allenby Capital (Nomad and Broker)
Nick Harriss/Nick Naylor +44 20 3328 5656