Fairpoint Group plc: Notice of intention to appoint Administrators

4 August 2017

 

For immediate release

 

Fairpoint Group PLC

("Fairpoint" or the "Group")

Notice of intention to appoint Administrators

 

 

On 3 July 2017 Fairpoint announced that AIB Group (UK) plc ("AIB") had assigned its debt due from Fairpoint to Doorway Capital Limited ("Doorway") and that, in conjunction with the assignment of debt, Doorway had provided a Receivables Funding Facility (the "Facility") of up to £5 million to Simpson Millar LLP ("Simpson Millar"), the Group's wholly owned Legal Services business.

 

The Board believe that this new Facility provided by Doorway will enable Simpson Millar and its subsidiaries (the "Legal Businesses") to continue to trade as going concerns and take advantage of the growth opportunity presented by the size and highly fragmented nature of the consumer legal services market-place.

 

However, ongoing support for the Group's subsidiaries outside of the Legal Businesses is made more difficult due to the existence of the onerous lease on the Group's head office which has an annual commitment of c£1m per annum for a further 4 years. As a result, and following detailed discussions and the evaluation of a number of options, the Board has concluded that the holding company of the Group, Fairpoint Group plc, is no longer able to continue trading as a going concern and has filed notice of intention to appoint administrators.

 

Unless financial circumstances change, and in accordance with statutory requirements, the Board intend to appoint administrators within 10 business days. The secured creditor can, however, appoint administrators without the requirement for notice.

 

The Board do not expect this announcement to have a material impact on the planned disposal of the IVA and Claims divisions to a third party, as previously announced on 12 July 2017.

 

A further announcement will be made in due course.

 

 

For enquiries please contact:

 

Fairpoint Group plc
David Broadbent, Chief Executive Officer		0344 826 1209
Shore Capital (Nominated advisor and broker)
Mark Percy		020 7408 4090
Edward Mansfield
MHP Communications		fairpoint@mhpc.com
Reg Hoare		020 3128 8794
Katie Hunt