13th May 2016 14:32
LONDON (Alliance News) - City of London Group PLC Friday said that, following a strategic review, it now believes it will see limited or no recovery from its investment in Trade Finance Partners Ltd.
The company had previously warned there was likely to be a significant impairment to the value of its investment in Trade Finance. The investment was valued at GBP6.6 million in the company's balance sheet as at the end of September 2015.
City of London Group said it continues to work with Trade Finance's principal secured creditor, Macquarie bank, to maximise recoveries and will provide a further update if it considers that the recovery position has improved such as it will receive a recovery on its investment.
It also has reviewed the position of its other major investment, an 85% stake in Credit Asset Management Ltd which was valued at GBP2.3 million in September, and has concluded it should look at wider strategic options for this business, including a potential sale.
Shares in City of London Group were untraded Friday. They last closed at 10.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
CIN.L