The firm has had a tough year in the lead up to this morning’s announcement
of trading suspension on the AIM market.
A statement accompanying the announcement said, “although discussions
continue in relation to the disposal of certain of the company’s assets as well
as with both potential new investors and its debt providers, it can no longer be
certain that it will continue to have sufficient funding to enable it to
continue to trade on a going concern basis.”
This is the latest blow for the firm which has had a tough star to the year.
The firm suffered cash flow problems following its appointment as
joint-liquidator for Texan, Allen Stanford.
Auditors, Ernst & Young, issued a going concern in February when the firm
released its interim results. The statement warned that uncertainties from
receiving funds from the Stanford case, combined with cash flow and cost
reduction initiatives, put doubt on its ability to continue.
Last week, liquidators from Vantis, working on the Stanford case, were
removed by the Antiguan courts, while the firm appeals the decision.
The high court of Antigua decided Vantis’ Nigel Hamilton-Smith and Peter
Wastell, joint liquidators of Stanford, should be removed from office and
alternative liquidators appointed.
Earlier this month, the firm also announced discussions with potential
investors to restructure its debt.
At the time the firm told the stock exchange it is negotiating with potential
investors and entering preliminary discussions with debt providers about
potential restructuring of the balance sheet.
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