19th Jun 2006 10:38
Millfield Group PLC19 June 2006 Millfield Group plc Statement re potential fundraising The Board of Millfield Group plc (the "Company") has noted the rise in themarket price of its ordinary shares on Friday of last week. On 5 May 2006 the Company announced that it was in discussions regarding apossible offer for the Company. The Company is no longer in such discussionswith any parties in relation to such an offer but has finalised its enhancedbusiness strategy referred to in its announcement on 11 May 2006 and has madeprogress working towards a capital raising with a view to restoring thefinancial strength of the group. In conjunction with Cenkos Securities Limited, the Board has been pursuing aplacing (the "Placing") of ordinary shares with existing shareholders and otherinvestors to raise a substantial amount of equity capital. Although the Placinghas not yet been secured indications of interest have been received from anumber of those shareholders and investors. In addition, agreement has beenreached in principle (and subject to the Placing proceeding) with the providersof the group's loan finance for a restructuring of their loans, including asubstantial reduction in the amounts which will be required to be repaid. The Placing is now perceived by the Board as the only practical solution to theCompany's problems. If the Placing does not proceed however, it is highlylikely that the Company and at least some of its subsidiaries will be placed inadministration in the near future. In this event it would be very unlikely thatthe ordinary shares of the Company would have any value. The Board will make a further announcement shortly. Contacts: Millfield Group Plc Alan Easter 020 8604 2600 Financial Dynamics Louise Dolan 020 7269 7192 Cenkos Securities Limited, which is authorised and regulated by the FinancialServices Authority, is acting for the Company and no one else in connection withthe matters referred to in this announcement and will not be responsible toanyone other than the Company for providing the protections afforded to itscustomers or for providing advice to any other person in relation to the mattersreferred to in this announcement. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
MIL.L