Urban Exposure confirms legal action over scrapped deal
Urban Exposure, an AIM-listed property financier, has confirmed that a break-up and delisting of the company has been scrapped – and that it will take legal action against the party that had planned to buy its loan book.
The company had struck a deal to sell its loans business to Pollen Street Capital-owned Honeycomb Holdings for £113.8m, and its asset management unit, Urban Exposure Amco, to its founders for £1.6m. The listed entity would then be wound up.
However, earlier this month – on the day the loan book sale was to complete – Urban Exposure said it had received notice that Honeycomb Holdings was terminating the deal.
Urban Exposure, an AIM-listed property financier, has confirmed that a break-up and delisting of the company has been scrapped – and that it will take legal action against the party that had planned to buy its loan book.
The company had struck a deal to sell its loans business to Pollen Street Capital-owned Honeycomb Holdings for £113.8m, and its asset management unit, Urban Exposure Amco, to its founders for £1.6m. The listed entity would then be wound up.
However, earlier this month – on the day the loan book sale was to complete – Urban Exposure said it had received notice that Honeycomb Holdings was terminating the deal.
Urban Exposure has now said in a stock exchange update that it sees “no valid basis” for what it calls a “repudiatory breach of contract” and will claim damages against Honeycomb Holdings, as well as relief from other Pollen Street Capital-linked entities, including Honeycomb Investment Trust, Shawbrook Bank, Pollen Street Capital and Pollen Street Capital Holdings.
The company also said the other parts of its restructuring, including the AIM delisting, will not go ahead, and that its general meeting has been postponed indefinitely.
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