Another fire sale property disposal for short-of-working-capital Ennstone, operator of four Argyll quarries,

The troubled Ennstone Group (operators of quarries at Furnace, Dunbeg, Benderloch and Bonawe in Argyll) announced today that it has now sold another property asset to meet its needs for short term working capital.

The property is the Group’s former natural stone works and redundant quarry at Stainton in County Durham. It has been sold to three local businessmen for £1.325million cash. Less than two weeks ago, on 31st December 2008, the property had a net book value of £2.234million. Ennstone expect the sale to complete on 14th January. Ennstone are to retain the proceeds of the sale to meet short term working capital needs.

The Group says that it is still pursuing negotiations either on refinancing or on an offer for the Company and admit that the company’s financing situation remains critical.

Its statement says baldly that: ‘…there can be no certainty of a satisfactory outcome’.