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Drip drop... Renaissance prepares to shut up shop...

23 Jul 2014

Struggling Renaissance has finally called a liquidator meeting, requesting shareholders vote on the future of the embattled company.

Set for the Langham Hotel, Auckland on Monday August 11, notice was given to shareholders today to consider, if thought fit, to pass the special resolution of shareholders.

Released via NZX, acting chairman Richard Ebbet told shareholders of the proposal to appoint Andrew McKay and Justin Bosley of Corporate Finance Limited as liquidators of the company.

“The proposal that shareholders are being asked to vote on today is to liquidate Renaissance, which would enable the return to shareholders of the net cash proceeds of the sale of Renaissance’s operating activities,” the statement reads.

At the 29 January 2014 Special General Meeting, shareholders voted to sell Yoobee School of Design. It was stated at that time that ‘once sold, there will be little left of value in Renaissance’.

At the 11 April 2014 Annual General Meeting, the Board advised shareholders that Renaissance’s remaining operating activities had also been sold, that Renaissance had net assets of $7.2m, and that the Board’s preference ‘assuming no alternative is presented’ was to proceed to a liquidation of Renaissance.

“The Board is able to report that the net asset position of Renaissance has improved slightly, to approximately $7.25 million as shown in the notice of meeting, owing to a better than expected outcome in the settling of certain contractual commitments and lease obligations,” the statement continues.

“The Board has sought to resolve all the outstanding issues that it can before liquidation in order to maximise the position for shareholders and, while this has protracted proceedings, the Board has now reached the end of that process.”

According to the release, the last decision for the Board to make was whether there were any more attractive alternatives to put before shareholders, such as the sale of the cashed up shell of Renaissance.

“The situation of Renaissance has been well known in the market since January of this year, and the Board has publicly stated that it would entertain any proposals,” the statement continues.

“There were four approaches in total. None of the approaches matured into proposals and they did not change the Board’s view that the best outcome is to return cash to Shareholders so that they can make their own decisions.”

To read the entire release click here