Friday 11th April 2014
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Shareholders in Renaissance Corp, which sold its last business unit earlier this month, are unlikely to receive any payments before June in what will probably be a two-part distribution if they decide to liquidate the company.
Chairman Colin Giffney told shareholders at today's annual meeting in Auckland the board wants to wrap up existing leases and contracts before appointing a liquidator, which investors will then vote on.
As at March 31, Renaissance had net assets of $7.22 million, or 16.6 cents per share, and could receive an extra $1 million, or 2.2 cents a share, if Youbee School of Design meets certain earn-out targets. It also has a contingent liability for leases it assigned if it's unable to release the premises.
"Our preference at this stage, assuming no alternative is presented to us, is to proceed as quickly as possible to tidy the affairs of the company and then call a meeting of shareholders to appoint a liquidator," Giffney said in speech notes published on the stock exchange. "There is unlikely to be any distribution before June. At this stage any distributions are likely to be in two parts and can only be made after appropriate advertising for creditors and other liquidator procedures."
Renaissance sold its ailing retail business earlier this month, having sold the design school in January when it signalled plans to liquidate the business and returns capital to shareholders.
Giffney said the board had been approached by a group of shareholders willing to entertain proposals to use the company as a shell for backdoor listings. Renaissance was approached in February, but hasn't heard anything since.
"We have considered restructuring the company to allow those that wished to stay in and take their chance on some future back door listing opportunity to do so and those who wished to cash out now to do so," Giffney said. "Personally I find it hard to understand why shareholders would vote to sell a great little business like the Youbee School of Design and then take a punt on some unknown new activity, but ultimately that would depend on shareholder desires."
The board will consider any proposals if they have merit, but if none emerge, will proceed to voluntary liquidation as soon as possible, he said.
The shares rose 6.7 percent to 16 cents in early trading.
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