Exclusivity on Davenham’s restructuring talks ends

TROUBLED asset lender Davenham Group has announced that the exclusivity period granted for it to agree a deal with its biggest shareholder, Kingswood Property Finance, and Moor Park Capital, has now expired.

The company had been in talks with  the pair about potentially reopening parts of the business to resume lending to certain companies, but this morning issued a statement saying that “whilst the discussions with Kingswood have not ceased, there remains no certainty as to whether these will lead to an agreement on a potential reconstruction of the group”.

Davenham’s board also restated its view that even if a deal were agreed, it is unlikely that this will lead to a return in any value for the company’s shareholders.

On Wednesday, Davenham announced that in the six months to December 31, pre-tax losses widened to £10.7m during on reduced revenues of £11.6m (£17.4m).
Its liabilities also now outweigh its assets by £36.8m.

By the end of December, its outstanding loan book stood at £65.1m, but the amount owed to its RBS-led banking syndicate was £86.3m.