19th Jun 2014 10:55
LONDON (Alliance News) - Public Service Properties PLC Thursday said it does not expects to receive any sum arising from the liquidation of Esquire Consolidated Investment Ltd, a company to which it sold two thirds of its assets in 2012 in a non-cash transaction in exchange for a 20% stake in Esquire.
As part of the transaction two years ago, Public Service Properties issued Esquire with a GBP2.8 million loan note. However, at the time of its issue Public Service Properties valued the asset at GBP1,000 reflecting the significant level of debt in the Esquire Group.
The property company said it has not accrued interest on the loan note as neither the interest nor principal were deemed to be recoverable.
Public Service Properties also said Thursday that it has been informed that the majority of the operating subsidiaries of European Care & Lifestyles (UK) Ltd, an intermediary holding company of the European Care Group, have been acquired by two investment firms. The company also said European Care Group has renamed itself Embrace Group Ltd.
In April, Public Service Properties said it was looking into the implications of European Care & Lifestyles (UK) Ltd falling into administration.
The company let nine care facilities in Merseyside and one in Scotland to European Care & Lifestyle companies in 2004 on 35 year leases. It also holds the license for the domiciliary care business operated by European Care & Lifestyles, and became a minority shareholder in it, as well as providing it with a subordinated loan note, after selling it some properties in 2012.
Public Service Properties said Thursday that the acquisitions included all of the ECL subsidiaries which entered into 35 year leases and businesses licences with Public Service Properties in 2004.
Monthly rents and business licence fees in respect of entities that are tenants and licensees of Public Service Properties-owned assets have continued to be paid in full, the company said.
Public Service Properties shares were untraded Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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