ENN Ennstone

 

TIDMENN 
 
RNS Number : 3509M 
Ennstone PLC 
28 January 2009 
 

 Ennstone plc 
("Ennstone" or the "Group") 
 
 
Statement re: Suspension 
 
 
On 19 December 2008, Ennstone announced that it was continuing to progress 
proposals which it had received for a sale of the Group as a whole or a 
substantial part of the Group's UK businesses, as well as a substantial equity 
investment and refinancing of the Group. Recent developments in these 
discussions, however, have meant that the likelihood of successfully concluding 
a solvent proposal for Ennstone plc and the Group as a whole has now diminished 
greatly. 
 
 
The Group continues to manage its cash position rigorously and has made a number 
of disposals of non-core assets which have provided additional short-term 
working capital in both the UK and US. The Group's UK lenders remain supportive 
of the UK businesses and discussions are continuing to seek a solvent solution 
for Ennstone's UK and Polish subsidiaries which is expected to be announced in 
the near future. 
 
 
In the US, the Group's cash position remains critical and its US subsidiary, 
Ennstone, Inc., has suspended payments of interest charges and finance lease 
repayments to its US lenders. Discussions with those lenders are on-going, and 
proposals have been made which may result in a solvent US solution, however the 
US lenders are still considering these proposals. In the absence of an agreed 
way forward with the US lenders by the end of January 2009, Ennstone, Inc.'s 
liquidity position will become critical. 
 
 
In the UK, the Board currently believes that it now has sufficient cash 
headroom through to the end of March 2009, on the basis that the UK lenders 
maintain their current facilities alongside additional supportive actions with 
the Group's lease finance providers and other stakeholders. The Group's UK 
businesses, Ennstone Johnston and Ennstone Thistle, along with its Polish 
subsidiary Ennstone Sp. z o.o., have continued to perform satisfactorily in the 
difficult trading environment and the Board anticipates that they would be in a 
position to continue to do so following the implementation of any required 
restructuring of the Group. 
 
 
Pending clarification of any possible transaction and the Company's financial 
position, Ennstone has requested a suspension of the trading of its shares on 
the London Stock Exchange with immediate effect. 
 
 
A further announcement will be made in due course. 
 
 
Enquiries: 
 
 
+------------------------------------+------------------------------------+ 
| Ennstone plc                       |                      01332 694 444 | 
| Julian Cooper/Vaughan McLeod       |                                    | 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Altium                             |                      0161 831 9133 | 
| Phil Adams/Adrian Reed             |                                    | 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| College Hill                       |                      0207 457 2020 | 
| Mark Garraway                      |                                    | 
+------------------------------------+------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 SRSBIGDBRUDGGCR 
 

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