Brief: Non-Standard Fin Provides Update On Current Status And Regulatory Matters

Non-Standard Finance

28/09/2022 08:09

Sept 28 (Reuters) - Non-Standard Finance Plc  NSF.L :
    * NON-STANDARD FIN  - UPDATE ON CURRENT STATUS AND
REGULATORY
MATTERS
    * DESPITE PROMISING OPERATIONAL PERFORMANCE, GROUP CONTINUES
TO BE
LOSS MAKING, AND FOR MARCH 2022 AND JUNE 2022 QUARTER END
COVENANT TESTS, LOAN TO VALUE RATIO WAS HIGHER THAN LEVEL
PERMITTED UNDER COVENANT.
    * GROUP, THROUGH NEGOTIATIONS WITH ITS LENDERS, HAS OBTAINED
A
SHORT-TERM WAIVER WHICH MEANS LOAN TO VALUE COVENANT WILL NOT BE
FORMALLY TESTED
    * DIRECTORS HAVE THEREFORE DECIDED TO PURSUE USE OF A
COURT-BASED
PROCESS ( 'PROCESS'), SUCH AS A SCHEME OF ARRANGEMENT OR
RESTRUCTURING PLAN, IN RELATION TO ITS REDRESS LIABILITIES
    * A SUCCESSFUL PROCESS WILL ALLOW GROUP TO PROCEED WITH ITS
PLANNED CAPITAL RAISE. IF SUCCESSFUL, PROCEEDS OF CAPITAL RAISE
WILL BE USED TO FUND A CASH POT WHICH WILL BE AVAILABLE TO
FINANCE PAYMENT OF REDRESS LIABILITIES TO AFFECTED CUSTOMERS
    * WITHOUT SUCCESSFUL COMPLETION OF CAPITAL RAISE, GROUP
REMAINS
BALANCE SHEET INSOLVENT AND GROUP'S ABILITY TO REMAIN A GOING
CONCERN IS SUBJECT TO MATERIAL UNCERTAINTIES.
    * GROUP IS ACTIVELY ENGAGED WITH FCA, FOS, AS WELL AS
ALCHEMY AND
GROUP'S LENDERS, REGARDING PROCESS.

Source text for Eikon:  ID:nRSb9163Aa 
Further company coverage:  NSF.L 
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