News blog

Travelzest

• BY: Andrew Hore |
• POSTED: 02/09/2013 |

A consortium led by LDC Logistics Development Corporation has bought the outstanding debt of Travelzest.

Barclays has assigned indebtedness of around £15m to a BVI-registered company called Elleway Acquisitions, which says that it will provide a working capital facility until the end of September. Travelzest’s position will then be reassessed.

LDC, which is owned by Canadian Chiko Nanji, is a 7.46% shareholder in Travelzest. LDC went above 3% in 2009 but took a month to tell the company, which, in turn, took nearly one year to tell the market.

LDC and its consortium has effective control of the future for Travelzest, which is dependent on its support. The share price has slumped by three-fifths to 0.3p, which values the company at £435,000. That suggests that there is not much optimism about the future of the company orits valuation.

Former chief executive Jonathan Carroll has initiated litigation in Canada against the company and its directors following his removal from office in July.

Carroll and Nanji know each other, although this may just be because Nanji has been a Travelzest shareholder for a number of years (http://www.openjaw.com/onthetown/ott.php?id=187/Schmooze_athon_With_Jonathan_itravel2000_Hosts_Annual_Bash).

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFAugust2013_47.pdf