Insolvency team called in by crisis-hit bookie
TROUBLED bookmaker Neville Porter has appointed an insolvency expert to strike a deal with its creditors.
The Birtley firm, which suspended trading in its shares on the Alternative Investment Market and closed its online and telephone betting operations last month, has appointed Antony Batty & Company LLP, which has proposed company voluntary agreements (CVA) for the company and its two subsidiaries.
A CVA is a deal between an insolvent company and its creditors which allows the company to repay some or all of its debts from future profits or the sale of assets.
Under such agreements, a company usually pays a proportion its debts to each of its creditors over an agreed period overseen by a court-appointed supervisor. It is an alternative to liquidation and is considered one of the Government’s preferred rescue options for struggling businesses.
In a statement to the Stock Exchange, the bookie said its plans for the business’s future and for convening an extraordinary general meeting would be sent to shareholders shortly.
Neville Porter’s finance director Simon Walters said he hoped the situation would be clarified by the end of the week. He said entering into a CVA would be “an opportunity to give some value to the shareholders and creditors”.
Neville Porter floated on the AIM in February last year and launched its telephone and online betting operations shortly afterwards. However, the company made pre-tax losses of £268,756 for the six months to the end of December.
Earlier this year, managing director David Neville Porter bought racecourse pitches and leased them back to the company in a £350,000 deal, while director Brian Morton agreed to provide an interest-free advance of £80,000 in a refinancing package designed to put the business back on its feet.
Regional head of Barclays Wealth in Newcastle Andrew Miller said: “The implication would be that things are difficult, particularly in this current environment where it is difficult to raise money.
“It is not a secret that people are facing higher costs of living and to a certain extent, putting bets on is a discretionary luxury.
“If you look at Ladbrokes or William Hill, two of the biggest betting companies, their share prices have fallen quite significantly recently.”
2008-05-28
