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Davenham Group

  • BY: Andrew Hore |
  • POSTED: 23/02/2011 |

Asset-backed finance provider Davenham Group is still in discussions with its 29.1% shareholder Kingswood Property Finance about a reconstruction.

Kingswood and Davenham’s banking syndicate have entered into an exclusivity and standstill agreement so that more detailed discussions can happen. Moor Park Capital Partners, a potential investor, is also part of the standstill agreement.

The banking syndicate has agreed not to call in loans before the end of March 2011 – unless board changes occur at a requisitioned general meeting.

The requisitioned general meeting is set for 10 March. There are resolutions to appoint David Anthony, who owns 14.9% of Davenham, and Gary Jennison to the board. This is the second requisitioned general meeting this year. The first, on 11 January, failed to appoint Anthony and Jennison and remove two existing directors Paul Burke and James Kerr-Muir from the board.

Unsurprisingly, Kingswood is voting against these proposals because they would scupper any reconstruction that could lead to parts of Davenham starting to write business again. 

At 3.875p a share, Davenham is valued at £1.01m even though the board says it is unlikely that the shares will have any value.

Download the February edition of AIM Journal at http://www.hubinvest.com/AIMPDFFebruary2011_17.pdf

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