Romag Holdings PLC (02820227): administration
- Status
- Administration ended
- Administration began
- 2011-04-04
- Administrators
- William Kenneth Dawson, Daniel Francis Butters
- Administrators' firm
- Deloitte
- Formerly
- SHK Limited; Romag Limited; Flairgybe Limited
- Incorporated
- 1993-05-21
- Location
- Newcastle upon Tyne
- Industry
- 7415
Why it went into administration
- Funding withdrawn / unable to refinance
From the administrators' statement
During December 2010 and January 2011 the Group held negotiations with the Bank, the Group’s secured lender, with regards to renewing its banking and borrowing facilities In January 2011 the Company appointed Altium Capital Limited (“Altium”) as its broker and nominated advisor with a view to an equity fundraising to reduce indebtedness to the Bank
At the end of January 2011, John Kennai, Chief Executive and Group Chairman, advised Altium of a payment he had made to the Group that had not been adequately disclosed in accordance with PLC’s AIM listed status Accordingly on 31 January 2011 the Group made an announcement to the market advising of this matter and requested the immediate suspension of trading in the Group’s shares pending further investigation Subsequently John Kennair stepped down as Group Chairman but remained as Chief Executive
In mid February 2011, the Group approached the Bank with a request to extend tts facility to cover a medium term funding requirement, which was necessary due to the Group's existing facility having been withdrawn Without additional banking facilities the Group had little prospect of ongoing trading The Bank did not agree to meet this additional funding requirement and as a consequence the directors were required to consider alternative options, and decided to pursue a fast track sale process
Administrators' statement of proposals (2011-05-20) · Companies House register