Story image

Renaissance capital return unlikely before June

11 Apr 14

Shareholders in Renaissance Corp, which sold its last business unit earlier this month, are unlikely to receive any payments before June in what will probably be a two-part distribution if they decide to liquidate the company.

Chairman Colin Giffney told shareholders at today's annual meeting in Auckland the board wants to wrap up existing leases and contracts before appointing a liquidator, which investors will then vote on.

As at March 31, Renaissance had net assets of $7.22 million, or 16.6 cents per share, and could receive an extra $1 million, or 2.2 cents a share, if Youbee School of Design meets certain earn-out targets. It also has a contingent liability for leases it assigned if it's unable to release the premises.

"Our preference at this stage, assuming no alternative is presented to us, is to proceed as quickly as possible to tidy the affairs of the company and then call a meeting of shareholders to appoint a liquidator," Giffney said in speech notes published on the stock exchange.

"There is unlikely to be any distribution before June. At this stage any distributions are likely to be in two parts and can only be made after appropriate advertising for creditors and other liquidator procedures."

Renaissance sold its ailing retail business earlier this month, having sold the design school in January when it signalled plans to liquidate the business and returns capital to shareholders.

Giffney said the board had been approached by a group of shareholders willing to entertain proposals to use the company as a shell for backdoor listings. Renaissance was approached in February, but hasn't heard anything since.

"We have considered restructuring the company to allow those that wished to stay in and take their chance on some future back door listing opportunity to do so and those who wished to cash out now to do so," Giffney said.

"Personally I find it hard to understand why shareholders would vote to sell a great little business like the Youbee School of Design and then take a punt on some unknown new activity, but ultimately that would depend on shareholder desires."

The board will consider any proposals if they have merit, but if none emerge, will proceed to voluntary liquidation as soon as possible, he said.

The shares rose 6.7 percent to 16 cents in early trading.

(BusinessDesk)

Workday customers start deployments to AWS infrastructure
Business software vendor Workday has turned it's previously announced AWS partnership into a reality.
Royole's FlexPai: So bendable phablets are a reality now
A US-based firm called Royole is delivering on that age-old problem of not being able to fold up your devices (who hasn't ever wished they could fold their phone up...)
How to leverage cloud for data-driven business ops
The next gen of cloud-based data platform services are flexible and cost-effective so even small organisations can unlock data insights.
What MSPs can learn from Datto’s Channel Ransomware Report
While there have been less high profile attacks making the headlines, the frequency of attacks is, in fact, increasing.
Cisco expands security capabilities of SD­-WAN portfolio
Until now, SD-­WAN solutions have forced IT to choose between application experience or security.
IDC - Global digital transformation spend to near $2T by 2022
Hardware and services spending will account for more than 75% of all DX spending in 2019.
AlgoSec delivers native security management for Azure Firewall
AlgoSec’s new solution will allow a central management capability for Azure Firewall, Microsoft's new cloud-native firewall-as-a-service.
Gartner - Global RPA spending hitting its stride
The biggest adopters of RPA today include banks, insurance companies, utilities and telecommunications companies.