Last checked at 
LONDON (Alliance News) - Braveheart Investment Group PLC said Monday it currently has no distributable profit and intends to create a GBP1.3 million reserve by cancelling its share premium.
Shares in Braveheart Investment closed down 4.2% at 18.20 pence on Monday.
The fund management company said its liabilities as at March 31 were GBP1.4 million and its retained earnings were GBP33,293. Braveheart has a further GBP270,000 of unrealised profits but also contingent liabilities of GBP147,982.
As a result of this the company currently has no distributable profit and is "unable to declare dividends".
Braveheart is therefore seeking shareholder permission to cancel its GBP1.6 million share premium account and use the resulting GBP1.3 million reserve to make dividend payments.
The company will also seek permission from the court, which it says may require Braveheart to "give undertakings for the protection of the company's creditors" and could reduce the amount available for dividends.
Braveheart's subsidiaries, which make up the majority of its creditors, have indicated consent to the cancellation and will not to seek payments until non-subsidiary creditors have been repaid.
