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LONDON - Minoan Group Plc (AIM:MIN) announced Friday it has received a formalized non-binding offer from DAGG LLP to acquire its subsidiary Loyalward Limited, as the company faces financial difficulties.
The offer comes after Minoan defaulted on a loan from DAGG that matured on December 31, 2024. Under the proposed terms, DAGG would forego a secured loan of approximately £1.3 million and contribute up to £676,170 in cash to Minoan to settle creditor debts. DAGG would also provide up to £930,030 to settle Loyalward’s outstanding liabilities.
Tim Hill, Minoan’s independent director, recommended that parties to liability settlement agreements accept the offer after considering the alternative of an insolvency process.
The proposal includes a payment structure where directors would receive 10% of amounts owed to them, while unsecured creditors would receive 20% of their claims, provided they can supply supporting documentation.
Minoan shareholders would retain their ownership interests in the company, though the Shareholder Loyalty Scheme would be terminated as a condition of the deal.
According to the announcement, Minoan reported negative shareholder funds of £4,174,000 as of October 31, 2024. The company’s auditor, Anstey Bond, previously issued a disclaimer of opinion, citing inability to obtain sufficient evidence regarding certain material liabilities totaling over £3.9 million.
The transaction would constitute a Substantial Transaction and Fundamental change of business under AIM Rules, requiring shareholder approval at a general meeting if it proceeds.
Liability settlement agreements will be sent to relevant parties on Monday, August 18, with recipients having ten calendar days to respond, according to the press release statement.
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