Craven House Capital PLC Investment update: Green Isle Clarification (3546H)
August 16 2016 - 11:37AM
UK Regulatory
TIDMCRV
RNS Number : 3546H
Craven House Capital PLC
16 August 2016
16 August 2016
Craven House Capital plc
("Craven House" or the "Company")
Investment update: Green Isle Clarification
The Company wishes to provide further clarification for
shareholders regarding the successful repayment to the Company of
the mortgage loan over the Green Isle Hotel.
The initial transaction took place on 24 May 2013. At the time,
Greentel Limited ("Greentel") was the sole owner of the Green Isle
Hotel. Greentel was wholly owned by Cranburg Limited, in
receivership. At the time of purchase Greentel had defaulted on
secured and unsecured debts in excess of EUR10 million.
Craven House purchased several of the senior loans for
EUR700,000. These loans were restructured and at the same time,
detailed negotiations took place with unsecured creditors to ensure
the hotel's operations continued uninterrupted. Craven House also
bought Greentel from the receiver for EUR1 on 24 May 2013. At this
time Craven House was therefore the senior secured creditor as well
as sole shareholder in the holding company.
Craven House, along with the management company hired to operate
the hotel, then restructured the business and returned it to
profitability while beginning much needed delayed and neglected
maintenance.
In November 2013 Craven House sold the Green Isle hotel to new
owners in a transaction whereby Craven House retained a new EUR1.5
million first mortgage secured on that property. The mortgage was
at an interest rate of 4% per annum. By this time, Craven House had
also recovered the vast majority of the initial EUR700,000
investment from cashflow generated by the hotel. The original
source of the funds for the EUR700,000 investment was a loan
provided to Craven House by the Company's investment manager
(which, as announced at the time, constituted a related party
transaction). The utilization of leverage in this manner further
enhanced the Company's return.
Payments received by the Company in respect of the loans
acquired equate in aggregate to EUR2.19m comprising, repayments of
principle of the original loan amount, repayments of restructured
and significantly lower principle of EUR1.5m and interest
payments.
The board believes the Green Isle investment to have provided an
excellent return for the Company and its shareholders.
Ends
For further information please contact:
Craven House Capital Plc Tel: 020 7002 1027
Mark Pajak
www.Cravenhousecapital.com
SI Capital Tel: 01483 413500
Broker
Nick Emerson
www.sicapital.co.uk
SPARK Advisory Partners Tel: 0203 368 3550
Limited
Nominated Adviser
Matt Davis/Mark Brady
www.Sparkadvisorypartners.com
About Craven House Capital
Craven House Capital (AIM: CRV) is an investment company seeking
deep value opportunities across the globe. It seeks to create
long-term shareholder value on a per share basis by deploying
patient capital. Craven House seeks to acquire real assets and
operating companies that capable of generating steady cash
flows.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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