By Steve Moore | Friday 11 August 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I previously wrote on Fairpoint Group (FRP) on a June update that it would not be in a position to publish its annual report and accounts in the six months from year-end it has under AIM rules as it was unable to sign-off the audit after having “been notified by its bank, AIB Group (UK) plc, that it is unwilling to provide the level of on-going support requested by the company”. This saw me note ‘a fair point towards disaster’… and now it’s all the way…
This is with an announcement of an appointment of RSM Restructuring Advisory as administrators to Fairpoint Group plc. It is then stated “the directors intend to continue to work with the administrators of Fairpoint Group Plc in order to try and preserve any remaining stakeholder value”.
This may offer some slight encouragement – but when company’s in this position talk of “stakeholder value”, rather than specifically mentioning equity holders it is nearly always bad news for the latter.
This is reinforced here by it also announced that Shore Capital has resigned as Nomad and broker with immediate effect - which ostensibly means one month to find a replacement, though “the company has no current intention of appointing a replacement Nominated Adviser”.
As such, it looks like continued suspension and then de-listing. Three lessons to learn were previously noted on this site HERE.
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