29th Feb 2016 17:25
LONDON (Alliance News) - Cambria Africa PLC's Chief Executive Officer Samir Shasha said Monday that it is his aim to guide the company back to profitability and restore shareholder value, having taken on the position from August last year.
Cambia Africa is an investment company with a portfolio of investments in Zimbabwe.
For the year to end-August Cambia Africa reported a pretax profit of USD820,000, swung from a pretax loss of USD5.4 million a year before, as revenue rose to USD10.3 million from USD9.4 million, and it saw USD3.5 million in proceeds on a litigation settlement.
Cambia Africa has been in a legal dispute with Consilium Corporate Recovery Master Fund, which formally demanded repayment of loans it had provided to Cambria, in October. Cambria submitted there was a " genuine and substantial dispute as to whether the debt was then payable", and Consilium withdrew their demand in response to Cambria's application for an injunction.
Consilium was then ordered by the High Court of Justice of the Isle of Man to pay the company's costs of and incidentals to the statutory demand claim on a standard basis.
Pending the resolution of the dispute with Consilium, as a consequence of which Consilium has converted their floating charge on Cambria's assets, Cambria said it is relying on a standby facility with Ventures Africa Ltd to fund its day to day operations.
Cambria said it continues to strongly refute Consilium's claim there has been an event of default that entitles Consilium to accelerate repayment of the loans. Both companies have agreed to the litigation arising from the dispute being stayed until April 30 2016, but Cambria said it continues to "diligently investigate all the claims it may have" against Consilium and the former chief executive and chairman of Cambria, both also directors of Consilium.
Shasha said that his first months since becoming chief executive have been "largely overshadowed" by the Consilium dispute.
"Considerable time, cost and energy have been invested in defending the Consilium claims and in uncovering the true state of affairs in which Cambria was left by the previous executive management," Shasha said in a statement.
"With a significant cash equity investment through VAL's subscription in April 2015, my interests as CEO are aligned with that of shareholders. Shareholders of Cambria have suffered a tremendous loss of value in their investment in the company. It is my aim to guide the group back to profitability and restore shareholder value," Shasha said.
Shares in Shasha closed down 10% at 0.360 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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