Rescission of Purchase Agreements
August 14 2009 - 2:00AM
UK Regulatory
TIDMOPF
RNS Number : 4308X
Off-Plan Fund Limited (The)
14 August 2009
+-------------------------------------+--------------------------------------------+
| For Immediate Release | 14 August 2009 |
+-------------------------------------+--------------------------------------------+
THE OFF-PLAN FUND LIMITED
(the "Company" or "Fund")
Rescission of Purchase Agreements in respect of Canon House, Wallington
In the interim results for the six months ended 31 March 2009, announced on 30
June 2009, the Fund stated that it had been given notice that the lending bank,
Bank of Scotland Plc, had appointed a receiver under the Law of Property Act
1925 in respect of the banks charge over Henry Homes (Wallington) Limiteds
("HHW") leasehold interest in the site at Canon House, Wallington. Owing to the
fact that this constitutes an insolvency event of default under each of the
purchase agreements entered into between the Fund and HHW in respect of the 118
residential units which were to comprise part of the proposed Canon House
development in Wallington (the "Agreements"), the Fund has exercised its right
to rescind each of the Agreements.
This rescission entitles the Fund to have the deposits it paid under the terms
of the Agreements, amounting to GBP1.1 million in aggregate (the "Deposits"),
repaid by HHW and releases the Fund from any further obligations in respect of
the scheme.
In accordance with its contractual rights, the Fund is entitled to and will seek
to secure the return of the Deposits as soon as is practicable. Should HHW fail
to repay the Deposits within 7 days the Fund may elect to petition for HHW to be
wound-up and thereby ultimately trigger the repayment of any outstanding amount
by Zurich Insurance Company (trading as Zurich Municipal) which has guaranteed
the return of the Deposits to the Fund in the event of such a winding-up.
The Fund will also, in accordance with its contractual rights, seek to secure
the return of the sum of GBP3 million held by AIB Bank (CI) Limited ("AIB") as
collateral for a completion guarantee provided by AIB to HHW's lending bank in
respect of the Fund's obligations under the Agreements, now rescinded.
This process is likely to take a number of weeks depending upon the actions of
relevant third parties and there will be a further announcement in due course.
List of Contacts:
Development Capital Management
Roger Hornett
Andy Gardiner
020 7355 7600
John East & Partners Limited, a
subsidiary of Merchant Securities Plc
(Nominated Adviser)
Bidhi Bhoma/Simon Clements
020 7628 2200
Buchanan Communications
Charles Ryland
Isabel Podda
020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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