18th Mar 2009 08:59
PAN PACIFIC AGGREGATES PLC
HSBC LEASE SETTLEMENT AGREED
AND
TRADING UPDATE
HSBC LEASE SETTLEMENT
On 4 December 2008, the Board of Pan Pacific Aggregates plc ("PPA" or the "Company") announced that, following discussions with HSBC and its lawyers, the quantum of the writ served by HSBC against PPA had been reduced from CAD$13.255m to CAD$1.652m and that it was the belief of the Directors that the true amount due to HSBC by PPA was significantly less and was the subject of further discussions to reach a final settlement figure.
The Board announces that it has now come to an agreement with HSBC to settle the abovementioned writ, which has been further reduced from C$1.652m to C$150,000 payable on or before 30 April 2009, subject to certain agreed upon and acceptable conditions.
TRADING UPDATE
As previously announced it was anticipated that the Pumptown Quarry and Caren Ridges sites would be operational during the first quarter of 2009. The Board now believe that the Pumptown Quarry operation will recommence in the second quarter of 2009, subject to the completion of a fundraising. As a result of the time and costs involved in reaching an agreement with HSBC and maintaining quarry operations, the Company's working capital position has been adversely affected.
The Company is in discussions with a number of parties regarding funding, but terms have not yet been agreed.
A further announcement will be made as and when these matters are resolved.
For further information please see the Company's web site, www.panagg.com or contact:
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Pan Pacific Aggregates plc |
Tel: +44 (0) 20 7096 9580 |
|
William Voaden |
|
|
Dowgate Capital Advisers Ltd |
Tel: +44 (0) 20 7492 4777 |
|
James Caithie / Aaron Smyth |
|
|
VSA Capital Limited |
Tel: +44 (0) 20 7096 9589 |
|
Paul Backhouse |
|
|
Lothbury Financial Limited |
Tel: +44 (0) 20 7011 9411 |
|
Michael Padley / Libby Moss |
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