Davenham is to appoint administrators and has its shares suspended on AIM.
Davenham refers to its announcement on 28 March 2011 in which the company confirmed that, in order to extend the steady platform from which to continue the run-off of the group’s loan book for the benefit of the group’s banking syndicate, the banking syndicate had extended the maturity of the group’s on demand bank facility from 31 March 2011 to 30 September 2011.
Following discussions between the banking syndicate and the company, the banking syndicate has (following the expiry of the term of that facility on 30 September 2011) informed the company that it will not be extending or renewing that facility and has demanded immediate repayment.
Given that the group is unable to repay the amounts due to the banking syndicate following the expiry of the term of the facility, the board has concluded that it should appoint administrators.
The administrators will work with the existing management team to complete the run-off of the group’s loan book in a prudent and orderly manner. The run-off to date has seen the group meet (or exceed) the financial milestones set by the banking syndicate as part of the run-off process.
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