Update (5410R)
November 04 2011 - 8:54AM
UK Regulatory
TIDMTAW
RNS Number : 5410R
Tawa PLC
04 November 2011
Tawa plc
4 November 2011
As reported in the announcement of our interim results, Tawa plc
is a member of the consortium whose members own the share capital
of its associate, CX Reinsurance Company Limited ("CX Re") and has
the benefit of deferred consideration arising from the sale of CX
Re in March 2006. The economic value of CX Re depends primarily on
the value of receivables from the consortium members related to tax
losses surrendered for the 2006 tax year. Of the $47.1 million net
asset value of CX Re at the half year, $33.9 million was held in
cash escrow accounts representing the present net worth to CX Re of
the losses surrendered and is not available for paying claims.
As envisaged in the announcement of our interim results, HMRC
has denied the relief claimed by the consortium beneficiaries and
the beneficiaries have now appealed HMRC's decision. The matter is
therefore expected to be litigated. As already reported it is
expected that the process may take upwards of 3 years to reach a
conclusion. The litigation is likely to have a substantial adverse
effect on the costs of the CX Re run-off and continue to restrict
its liquidity. The consortium has the benefit of positive advice
from leading counsel.
Enquiries:
Gilles Erulin, Chief Executive
Tawa plc 020 7068 8000
----------------------------------- --------------
Guy Wiehahn
Peel Hunt (nominated adviser and
broker) 020 7418 8900
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This information is provided by RNS
The company news service from the London Stock Exchange
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