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Hightex Group PLC - COMMENCEMENT OF INSOLVENCY PROCEEDINGS

RNS Number : 1763G
Hightex Group PLC
02 March 2015
 

02 March 2015

 

Hightex Group plc

 

("Hightex" or the "Company")

 

COMMENCEMENT OF INSOLVENCY PROCEEDINGS

 

 

As announced in November 2014 Hightex GmbH, the Group's operating subsidiary, has been following a self-administered creditors' plan intended to facilitate the reorganization and restructuring of Hightex GmbH. These German proceedings are comparable to the chapter 11 procedure in the USA.

 

A decisive factor in the creation of this critical financial situation for Hightex GmbH was the misappropriation of funds totalling 3.3 million Euros by the managers of the Brazilian joint venture company in connection with the construction of two stadia for the FIFA 2014 World Cup. The consequential liquidity problems resulted in part from this misappropriation as well as from the failure to win any stadia contracts to date and in particular contracts in relation to the 2018 FIFA World Cup competition to be held in Russia.

 

On February 27th 2015 the Hightex GmbH creditors' committee, unanimously approved in principle an offer for Hightex GmbH made by an Austrian company. The results of the plan for the disposal of the GmbH will be submitted to the local court in Rosenheim, Bavaria, and, after confirmation by the court, the decision will be mandatory for all creditors.

 

The directors of Hightex Group plc regret that as a result of the information regarding the offer received on February 27th it is now clear that no funds from Hightex GmbH will flow to Hightex Group plc, which is therefore in a critical financial situation. The directors have concluded that an insolvency procedure should be commenced immediately and details will be confirmed as soon as practicable.

 

 

For further information contact:

 

Hightex Group plc


Charles DesForges, Non-Executive Chairman

Tel: +49 8051 6888 200

Frank Molter, Chief Executive Officer

 

www.hightexworld.com

ZAI Corporate Finance Ltd


Nominated Adviser and Broker

Tom Price / Irina Lomova

Tel: +44 20 7060 2220

www.zaicf.com



 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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