Legion Group suspends shares, negotiates with HMRC and attempts to sell its business - in a bid to avoid insolvency
Accountancy Age, 29 Jul 2010
Legion Group's board is in discussions to sell the business, in an attempt to avoid administration.
The security services provider's shares were suspended yesterday due to it facing "significant" working capital restraints. Legion has been in discussions with HM Revenue & Customs over its outstanding PAYE and VAT liabilities, but it would have insufficient funds to meet these liabilities should they need to be settled in full in the short-term.
Should a sale attempt be unsuccessful, administration "may be a possible outcome".
"The board remain committed to seeking a viable solution and will make further announcements as appropriate," it said in a statement to the Stock Exchange.
Its working capital constraints were slightly eased when it agreed an invoice discounting facility with Lloyds TSB on 14 July.
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