30th Mar 2020 18:16
(Alliance News) - Health and housing property planner Ashley House PLC said Monday its 76% subsidiary F1 Modular Ltd has filed a notice of intention for appointing administrators.
Two partners have been appointed from RSM Restructuring Advisory LLP as administrator, and are pursuing an accelerated sale process to find a buyer for the business.
Should the process not be completed the F1 Modular business will be shut down.
In addition, Ashley House is continuing to pursue legal remedies to recover long overdue recievables of GBP1 million.
The group has reached an agreement with one of these parties, with the payment expected in the near future.
Discussions are continuing with potential equity investors, however uncertainty caused by the Covid-19 pandemic is causing a delay to a potential equity raise and trading in general.
Ashley House is currently seeking support from its bankers under the Coronavirus Business Interruption Loan Scheme. If unsuccessful, the company will not be able to continue trading.
Finally, as part of its cost cutting measures, Chair Christopher Lyons and Non-Executive Director Andrew Willetts have stepped down with immediate effect.
Until its shares resume trading, the company will operate of three executive directors and one non-executive director, to ensure appropriate governance.
Shares in Ashley House closed suspended from trading in London.
By Dayo Laniyan; [email protected]
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