Top Ten Holdings Plc

Top Ten renews banking arrangements and plans to de-list from AIM

22 April 2009

In the Company's Interim Results Statement for the six months ended 30 September 2008 (which were announced on 21 November 2008)  the Company disclosed that it had breached one of its banking covenants in June 2008 and had breached two covenants in September 2008 but was holding constructive discussions with its bankers. Since 21 November 2008, the Company has continued to be in breach of its banking covenants and, given its level of bank borrowings and the current economic environment, it is unlikely to be able to meet all its existing covenants for the foreseeable future. 

Top Ten has agreed in principle with its bankers new facilities which will enable the Company to continue to trade. The terms of the new facilities will result in the bank receiving a substantial proportion of any eventual increase in the value of Top Ten over and above the amount of its current bank borrowings of £30 million (as at 31 March 2009). 

In order to save costs, the Company, in conjunction with a number of other initiatives, is planning to cancel the trading of its shares on AIM. 

A further announcement will be made in due course. Assuming that the negotiations with the bank are finalised a circular will be sent to shareholders seeking their consent (as required by the AIM Rules) for the cancellation of the trading of its shares on AIM; setting out further details of the arrangements with the bank; and describing what, if any, alternative share dealing arrangements the Company has made.

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