Best Casino Sites Not On GamstopUK Casino Not On GamstopCasinos Not On GamstopNon Gamstop CasinosNon Gamstop CasinosNon Gamstop Casinos

Renewables flop opts for CVA

Companies: KPR ��
11/04/2007

Investors in KP Renewables have voted for a Company Voluntary Arrangement (CVA) and a search for a deal as a shell.

Shares in KP, which was floated on AIM in 2005 with Deloitte as nominated adviser to back renewable energy projects, fell 99.5 per cent to 1.75p this morning as they returned from a seven-month suspension. The company had lost its way with the illness and later death of founder and chief executive officer Dr James Watkins. Losses for the six months to last June surged from �84,000 to �2.3 million, �400,000 more than the previous full-year deficit, with more than half the interim losses reflecting provisions against assets now deemed worthless.

Chairman John Bryant and his board persuaded creditors and shareholders that a CVA would be the only route by which they could obtain any residual value. The process has involved a �575,000 emergency placing and a hefty share consolidation.

Creditors and shareholders who voted for the cash and shares option contained in the CVA are theoretically entitled to 60 per cent of any net proceeds that may flow from KP-backed projects over the coming three years. But the board is being restructured to steer KP into either a new investment in renewables or, more likely, a reverse takeover deal as a shell.

Out go David Lloyd-Jacob, former finance director of Consolidated Goldfields and rescue chief of scandal-ridden Butte Mining, Stephen Drummond and Paul Goodrow. In come small company corporate finance specialists Peter Redmond and Richard Armstrong, former prot�g� of broker Fiske’s shellmeister Derec Holmes (affectionately known in the City as the “White Rat”), and, like Redmond, a director of shell group BWA and ex-director of Victoria Oil & Gas.

KP’s prospects now depend on the final successful and clean conclusion of its restructuring and refinancing and whatever reverse-takeover deal Redmond, Armstrong and Bryant can find for the company.

Robert Tyerman

Related Articles:
28/11/2008
27/11/2008
26/11/2008
25/11/2008
24/11/2008

People who read this article also read ...
08/05/2007
01/05/2007
11/04/2007
11/04/2007
13/03/2006

AIM0pm p p
Other company articles:
11/04/2007
03/10/2006
25/11/2005
29/07/2005

Sponsored Listings

Looking for Development Finance We have reviewed and sorted 276 odd links for development finance - the top 10 list is presented here..

Development Finance Looking for Development Finance? Review our comprehensive listings.

Business Bank Accounts UK We present absolutely free financial information and a superior financial search system.

Recommendations

Hyder Consulting

STRONG BUY

Futura Medical

SPECULATIVE BUY

Education Development International

ADD

Umeco

HOLD

Relax Group

HOLD

Digital Marketing

BUY/HOLD

Superglass Holdings

SPECULATIVE BUY

Hallin Marine Subsea International

REDUCE

Lo-Q

HOLD

Hardy Underwriting Bermuda

HOLD
AIM