Stock exchange: RBG shares at all-time low
RBG Holdings – the AIM-listed owner of London law firms Rosenblatt and Memery Crystal – has suspended trading in its shares amid worries about its solvency.
Following a public row with founder Ian Rosenblatt earlier this month, RBG announced that it had entered into an exclusivity period to explore a sale of the ‘Rosenblatt’ branded business, “together with certain assets”, to a law firm shell he has bought – Rosenblatt Law Ltd (RLL).
The board had also countered Mr Rosenblatt’s claim that the business was insolvent, saying “the company continues to trade and enjoy the support of its principal creditors, whilst it explores ongoing opportunities to strengthen its balance sheet”.
It added: “Should an agreement be reached on the terms currently being negotiated, the board anticipates the company will have sufficient cash headroom for the foreseeable future.
“In the event the company cannot reach an agreement with its principal creditors, it will need to explore alternative financing options immediately.”
Today RBG told investors that it had “remained confident” that a solution for the future of the business could be found and had also been in discussions with another party “in relation to a potential transaction on a solvent basis”.
However, while discussions with RLL were ongoing, the discussions with the other party have ceased.
“Having considered the company’s financial position and the lack of progress regarding the various strategic options explored, it is the board’s view that it is unlikely to be able to secure the funding that it requires in a timely manner to secure the company’s future and so is now taking action to protect value in the business for the company’s creditors and other stakeholders.”
The announcement said that, in light of the uncertainty about the group’s financial position, the board had requested a temporary suspension of its shares. This was done when they were at an all-time low of 0.89p.
