10th Mar 2015 08:27
LONDON (Alliance News) - Residential property company Grainger PLC on Tuesday said it has undertaken enforcement action and has exercised its rights over the share capital of Equity Release (Investments) Ltd after Clifden Holdings Ltd failed to pay the deferred consideration owed on the sale of the portfolio.
Grainger sold the Equity Release home reversions portfolio to Clifden in January 2014 for GBP87.6 million, with GBP35 million of this due as deferred consideration.
The deferred consideration had been due on January 9, but Grainger said Clifden has failed to make the payment, meaning Grainger has now exercised its security and rights over the share capital of Equity Release.
Grainger has appointed two partners from Ernst & Young to act as administrators to Clifden and has agreed to re-acquire the shares in Equity Release. It estimated the net asset value of Equity Release, excluding the sums owed to Grainger, is around GBP21 million.
Grainger said it is continuing work to determine the total value recoverable and said legal proceedings may be pursued in due course.
Grainger shares were up 0.1% to 206.10 pence just after the open on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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