Hirco plc Business Update (5995X)
January 14 2014 - 5:43AM
UK Regulatory
TIDMHRCO
RNS Number : 5995X
Hirco plc
14 January 2014
14 January 2014
Receiver Appointed for Chennai Assets
On 24 December 2013, the Bombay High Court appointed a court
receiver to manage the property of Hiranandani Palace Gardens, the
owner of the Chennai residential assets. The court issued the order
appointing the receiver on the application of Tata Capital
Financial Services after Hiranandani Palace Gardens defaulted on a
loan of R76 Crore - approximately GBP7.5 million. The court also
directed Hiranandani Palace Gardens to file an affidavit of
disclosure detailing all of that company's unencumbered assets.
Tata Capital alleged in support of its winding up petition that
Hiranandani Palace Gardens had misrepresented facts to obtain the
loan.
Based on information provided to Hirco Plc by the Indian project
companies, Hirco Plc has calculated that cash collections for
Panvel and Chennai totalled approximately GBP192 million up through
the end of November 2013, that according to a Cushman and Wakefield
valuation the project companies provided to Hirco Plc as of late
2011, the Chennai and Panvel assets had a value of GBP556 million,
that some or all of these assets secured debt amounting to GBP101
million, and that the Tata enforcement action is for approximately
GBP7.5 million plus interest and costs. Hirco Plc has therefore
written to the directors of the Indian project companies demanding
an explanation as to how and to whom the cash collections were
disbursed and why the companies were unable to repay their debts.
The Company has also asked for a forensic accounting examination of
the books and records of the Indian project companies. Finally,
Hirco Plc has notified the directors of the Indian project
companies that if adequate explanations are not forthcoming, it
will notify law enforcement authorities. A copy of this letter has
been posted to Hirco Plc's website.
Hirco Plc will also continue to pursue redress against Niranjan
Hiranandani and Priya Hiranandani, for fraud and other wrongdoing
through the ongoing litigation and arbitration proceedings.
For further information please contact:
IOMA Fund and Investment Management Limited Tel: +44 (0)1624 681250
Philip Scales
N+1 Singer Tel: +44 (0) 20 7 496 3000
James Maxwell/Nick Donovan
This information is provided by RNS
The company news service from the London Stock Exchange
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