£1.18m
0.000p
4.88p
DA Group PLC
25 October 2007
25 October 2007
DA Group plc
'DA Group' or the 'Company'
Appointment of Administrator(s) and Sale of Operating Activities
On 10 October 2007, the Company announced that it had entered into non-binding
heads of agreement for the sale of its operating activities, including its
principal trading subsidiary, for a cash consideration of £500,000. Given the
cash flow forecasts for the Company and, on the basis that the Board believed
that if the sale did not proceed the Company would have insufficient funds to
meet its liabilities as they fell due by the end of October 2007, DA Group
suspended its shares with immediate effect pending the outcome of the proposed
sale.
Since that announcement, the Directors have worked towards completing the sale
of its operating activities. During the course of the negotiations and having
regard to the Company's cash flow position, the Directors reached the conclusion
that it would be in the best interests of shareholders, employees and creditors
of the Company to appoint Administrators with immediate effect and for the sale
of the operating activities to be completed by the Company in administration.
The Company has today appointed John Reid and Lee Manning of Deloitte & Touche
LLP as Administrators (the Administrators) of the Company and, immediately
following the appointment of the Administrators, the sale of the operating
activities and assets of the Company to MLC 50 LP was completed for a total cash
consideration of £450,000 of which £100,000 will be held in escrow pending
registration of the title to the shares in the subsidiary companies of the
Company which have been sold to MLC 50 LP. The reduction in the consideration
from the figure set out in the heads of terms reflects the reduction in the
working capital of the Company prior to completion.
No decision has been taken by the Administrators as to the future of the Company
at this time.
Immediately prior to the appointment of the Administrators, Sir Maurice Adrian
Shinwell and Robert Alexander Walker intimated their resignation as
non-executive directors of the Company and Cyril Dickson Scott intimated his
resignation as a director of the Company.
ENQUIRIES:
John Reid, Deloitte & Touche LLP +44 (0) 131 535 7426
Mike Antliff, Paul McCaffrey, DA Group +44 (0) 141 582 0600
Tom Moriarty, Caroline Evans-Jones, ICIS +44 (0) 20 7651 8688
This information is provided by RNS
The company news service from the London Stock Exchange