PUMA VCT 8 PLC Puma Vct 8 Plc : Investment In Opes Industries Limited
04 Mars 2016 - 5:42PM
UK Regulatory
TIDMPUM8
Puma VCT 8 plc ("the Company")
Investment in Opes Industries Limited
On 13(th) August 2014, the Company invested a total of GBP1m into Opes
Industries Limited ("Opes") as part of an GBP8.8m investment by Puma
entities. Opes owns a 73 hectare site in north Oxfordshire with an
operating landfill site for non-hazardous materials and an
aggregates/gravel quarrying business.
The site had planning permission for a Materials Recycling Facility
("MRF") to process waste from commercial and industrial sources and from
construction and demolition. The MRF was designed to separate metals for
recycling, generate solid recovered fuel ("SRF") and send only a small
proportion of the material accepted at the gate for landfill. As a
result the MRF would mitigate the cost of landfill tax incurred from a
consignment. The site also had planning permission for a gasifier to
turn the SRF into a combustible gas for power generation.
The Company's investment was to provide funding for the construction and
equipping of the MRF and working capital during the build-up of the
trade. The funding was provided in the form of equity and loan stock and
our interests are covered by a first fixed and floating charge over all
Opes' assets including a charge over the land and buildings. A large
industrial building (approx. 100m x 30m) was constructed to house the
MRF which began operating during 2015.
In the early hours of Sunday 28(th) February 2016, a fire was discovered
within the waste reception hall of the MRF. The fire has seriously
damaged at least one third of the building and seems to have destroyed
approximately half of the plant and equipment. However, the fire is
still smouldering and the hall is inaccessible. It is therefore
currently impossible to make an informed assessment of the extent of the
damage. No one was hurt in the fire.
It is clear that the immediate consequence of the fire is that the plant
cannot now operate and will require substantial rebuilding and
reequipping before it can reopen. We understand that the MRF and the
Opes business is insured in respect of plant, building and business
interruption, but clearly it will take some time for insurers to assess
the damage. Given the current status of the business, it is likely that
the Puma VCTs will appoint an administrator of Opes very shortly.
The Company's board has carefully considered the situation and believes
that when matters are clearer it will wish to make some provision
against the Company's investment in Opes. The size of any provision
remains open at present, but on the basis of current information it may
be greater than 5% of the Company's Net Asset Value ("NAV") and
therefore classified as material to NAV.
Enquiries:
Graham Shore +44 (0) 20 7408 4090
This announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: PUMA VCT 8 PLC via Globenewswire
HUG#1992075
(END) Dow Jones Newswires
March 04, 2016 11:42 ET (16:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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