(2nd February: New section below) In a worrying indication of Argyll and Bute Council CEO’s lack of control – 
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Tag Archives: Bonawe
Council careless of child protection responsibility in proposed axeing of 408 Bonawe bus service
Save Our Bonawe Bus Service, SOBBS Archattan Community Council, Continue reading
Packed Ardchattan Community Council hears Oban-Bonawe bus under threat
At tonight’s (26th January 2012) meeting of Ardchattan Community Council, Continue reading
Ennstone Thistle and other subsidiaries sold as going concerns as Ennstone Group goes into administration
Ennstone Group has announced that it has sold its UK and Polish subsidiaries – to Breedon Holdings Ltd, a company backed by Barclays Ventures and a number of other financial institutions. The sale – for an undisclosed amout, is not expected to result in any return to shareholders.
However, since the subsidiaries were understood to be trading steadily, their sale as going concerns to a stable buyer is good news for Argyll. It will be welcomed in the communities of Benderloch, Bonawe, Dunbeg and Furnace where Ennstone Thistle operates local quarries.
The sell-offs were made following the appointment as Joint Administrators for Ennstone Group of business restructuring partners, Nick Dargan and Matthew Cowlishaw of Deloitte LLP. This was done on 9th March.
At the same time the company applied to the UKLA and London Stock Exchange to cancel Ennstone plc’s listing on the London Stock Exchange with immediate effect.
The Group’s UK banking syndicate had maintained its support for the company as it struggled over the past eight months to to achieve a solvent restructuring through asset sales and attemnpts to raise new equity.
The deteriorating market conditions defeated its restructuring efforts, making its descent into administration and Stock Market delisting inevitable.
The Board of Ennstone plc have now said: ‘The Group has been facing the most challenging economic conditions for decades which have reduced operational performance. These conditions have also prevented the Group from raising the further financing it needed or from realising disposals at prices which could have resoved the Group’s financial problems. The sale of the UK and Polish subsidiaries has secured the jobs of over 1,000 of the Group’s employees’.
Matthew Cowlishaw, Joint Administrator, says: ‘The slowdown in the house building and infrastructure sectors along with the lack of funding for potential acquirers has played a significant role in the Group’s difficulties. Securing a going concern sale of the UK and Polish subsidiaries, whihc will protect over 1,000 jobs, is positive news for the employees and the industry as a whole’.
Ennstone loses another director
In its fight to survive in the current recession, Ennstone Group have just announced that Mr. Eric Gadsden has informed the Board of his decision to resign as a non-executive director of Ennstone with immediate effect.
Ennstone Group’s susidiary, Ennstone Thistle – itself trading with no great difficulty – operates four Argyll quarries with a vested interest in the health of the parent company.
Ennstone Group sell more US assets
The Ennstone Group, whose Scottish subsidiary, Ennstone Thistle, operates four Argyll quarries (at Benderloch, Bonawe, Dunbeg and Furnace), has now sold more of its assets in the USA. The company’s shares were suspended on the London Stock Exchange on 28th January. It has now said that Ennstone Inc, its American company, sold the trade and assets of its ready mixed concrete businesses located in Charlottesville and Elkton, Virginia, to Wilson Ready Mix LLC for US$3.1 million in cash on 20th February.
Following this sale, Ennstone Inc. will be required to repay approximately US$0.95 million of outstanding Industrial Revenue Bonds and finance leases related to certain of the Assets.
At 31st December 2008, the assets now sold had a net book value of US$4.6 million. In the financial year ended 31st December 2008, these assets generated a loss of US$0.55 million. Ennstone Inc. is understood to be currently negotiating with its US lenders as to how the proceeds of this asset sale, which will be retained in the US, will be applied.
Another setback for Ennstone – and for their Argyll quarries
Ennstone Group has announced that the discussions it has been engaged in over a possible offer for the Group have been terminated and that the Group is consequentlty no longer in an offer period. This development sees one of the Group’s options closed down. For Argyll is keeping a watching brief on this situation and will report when there is more news.
The hope for Argyll is that the Group’s subsidiary, Ennstone Thistle, operator of its four Argyll quarries at Benderloch, Bonawe, Dunbeg and Furnace, is said to be in a good trading position.
Board change at troubled Ennstone Group
Ennstone Group have announced that Mark Elliott has resigned as a Director on the Board of the Company with immediate effect but will continue in his role as President of the Company’s US subsidiary, Ennstone, Inc.
This news should be read alongside the series of articles For Argyll has published on the continuing troubles of the Ennstone Group. Entering ‘Ennstone’ in the Search on this page will bring access to previous news items.
Argyll has a particular interest in the struggles of the Group as its Scottish subsidiary, Ennstone Thistle operates four Argyll quarries – at Furnace, Dunbeg, Benderloch and Bonawe.
The news gets grimmer for Argyll’s four Ennstone quarries
The Ennstone Group has just (28th January) announced that it has today asked for a suspension of the trading of its shares on the London stock exchange – with immediate effect.
In the USA, Ennstone Group’s cash position is still critical. Its US subsidiary, Ennstone Inc., has now suspended payments of interest charges and finance lease repayments to its US lenders. The Group says that discussions with these lenders are continuing and proposals have been made which may result in a solvent solution in that country. This though depends on the response of the US lenders who are still considering the proposals put to them. Should they either reject the proposals or fail to come to a decision by the end of January 2009, Ennstone, Inc.’s liquidity position will become critical.
On 19th December 2008, Ennstone Group announced that it was continuing to negotiate on proposals which it had received for the sale of the Group as a whole – or for a substantial cluster of its UK businesses. These proposals involved a significant equity investment and a refinancing of the Group.
However, the group says that recent developments indicate that there is now a diminished likelihood of it successfully concluding a solvent proposal for Ennstone plc and for the Group as a whole.
It emphasises that it is continuing to manage its cash position rigorously and has made a number of disposals, all reported by For Argyll, of non-core assets which have provided additional short-term working capital in both the UK and US.
Ennstone reports that its UK lenders remain supportive of the UK businesses and that discussions are continuing to seek a solvent solution for Ennstone’s UK and Polish subsidiaries. This is expected to be announced in the near future and this is the announcement that will impact upon the position of the Argyll quarries.
The Ennstone Group Board believes that it has sufficient liquidity to the end of March 2009 provided that its UK lenders maintain and develop their current facilities. This would also depend upon the continuing support of the Group’s lease finance providers and other stakeholders.
The Group’s UK businesses, Ennstone Johnston and Ennstone Thistle – operator of Argyll’s four quarries at Furnace, Dunbeg, Benderloch and Bonawe – and its Polish subsidiary Ennstone Sp. z o.o., have continued to perform satisfactorily in the current economic downturn.
The Board anticipates that they would be in a position to continue to continue to trade satisfactorily following any required restructuring of the Group.
The Group’s decision to ask for the suspension of its shares from London Stock Exchange trading is a result of the need for space for clarification of any potential transaction and of the Company’s financial position.
The group will make a further announcement in due course but the nail biting at the Argyll quarries continues.
Ennstone disposals continue
The Ennstone Group is continuing its asset disposals. It has announced that its wholly owned subsidiary, Ennstone Inc., has agreed the sale of its wharf facility in Pittsburgh, Pennsylvania to West Penn Aggregates Inc. West Penn Aggregates will pay, on completion, $1.73 million cash. Completion of the transaction is conditional on Ennstone Inc.’s lenders releasing their security interest over the wharf facility.
Ennstone anticipates that the sale will be completed by 26th January 2009. The Group will then be required to repay approximately $0.21 million of outstanding finance leases of parts of the property concerned. On 31st December 2008, the property had a net book value of $1.95 million and had generated a loss of $0.66 million in the financial year which ended on that date.
Ennstone Inc. is currently negotiating with its US lenders on how the proceeds of the sale – which will be retained in the US – will be applied.
Ennstone Group is continuing to seek and negotiate on either a refinancing or an offer for the Company. However, it concedes that its financing situation remains critical and there can be no certainty of a satisfactory outcome.
This means that the four Argyll quarries – at Furnace, Dunbeg, Benderloch and Bonawe, operated by the Group’s Scottish subsidiary, Ennstone Thistle, will have to continue to hold their breath.