Re Suspension

19 Sep 2007 10:25

CCH International plc19 September 2007 Press Release 19 September 2007 CCH International plc ("CCH" or the "Company") Re Suspension On 16 August 2007 trading in the Company's shares on AIM was suspended followingan announcement that the Company was in discussions regarding certain of itsfunding lines. These discussions were necessitated as a result of one of theCompany's funding banks ("the First Bank") indicating that it intended toterminate agreements with the Company and CCH Europe GmbH ("GmbH"), CCH'sprincipal subsidiary, following a review by the First Bank which revealed thatapproximately US$340 million of lending advanced through GmbH had not beenapplied to short term receivables but to longer term commitments. The First Bankdemanded immediate repayment of all funds (totalling approximately US$500million) advanced under those agreements by the First Bank on its own behalf andon behalf of a second bank for which it was acting as agent ("the Second Bank").In view of the threat of disruption and uncertainty caused to the Group'sbusiness by these developments, the Board decided to request suspension oftrading in its shares. Confidential negotiations to conclude an agreement with the banks for repaymentof the funds over a three year period are at an advanced stage. On 19 August2007 the Company and GmbH, amongst others, concluded an agreement with the FirstBank. This agreement is conditional on a number of matters includingarrangements being reached with the Second Bank, which arrangements remainsubject to ongoing negotiations. In connection with the above arrangements on 18 August 2007, in order to protectthe Company's assets, CCH entered into an agreement to sell GmbH to Eren Nil,CCH's Chief Executive Officer and the sole director of GmbH, for US$1 with anoption to re-purchase GmbH for US$1 at any time up to three years and six monthsfrom the date of the agreement. This agreement may be rescinded by CCH in theevent that approval of the transaction by the shareholders of CCH is notobtained by 30 September. In the event that CCH does not sell GmbH within 28days of the arrangements with the banks mentioned above being completed, CCH hasunder-taken to grant the First Bank an option to acquire GmbH for US$1. The Company is not currently in a position to issue notification of all theinformation required by Schedule 4 to the AIM Rules or to send a circular toshareholders convening a meeting to seek their consent to the disposal of GmbHto Eren Nil, a related party, as required by the AIM Rules. The Company is not yet in a position to ascertain the full impact of recentevents on its future prospects but it is unlikely that business activity will besustained at levels hitherto reported. A further announcement will be made as soon as possible. For further information, please contact:CCH International Plc www.cch-international.comIan Salter, Non-Executive Chairman Tel: +44 (0) 20 8334 0871info@cch-international.com Insinger de Beaufort http://www.insinger.comPeter Ward, Tel: +44 (0) 207 190 7000pward@insinger.com Media Enquires:Abchurch Communications www.abchurch-group.comCharlie Jack / George Parker Tel: +44 (0) 20 7398 7700charlie.jack@abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange