Oak Holdings has resorted to loans from third parties in order to find working capital for its operations.
Yorke & Hartford Ltd and Uday Nayak are among the lenders. These lenders have previously lent money to Oak and are now owed a total of £245,000. The loans have interest rates of 7% or 11% and Oak is trying to extend them as well as seeking more cash. Y&H and related lenders have a debenture over the assets of classic motor vehicle refurbisher Oak Heritage.
The shares were suspended on 21 October when Rotherham Metropolitan Borough Council terminated Oak’s contract to manage the Rother Valley Country Park, which generated most of Oak’s revenues. Oak is taking legal advice and hopes it can get compensation for the early termination.
The shares remain suspended. At the suspension price of 1.25p, Oak is valued at £690,000.
Management is assessing two potential acquisitions.
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