METC Metic Grp

 
TIDMMETC 
 
For immediate release: 10 June 2009 
 
                            Proposed Restructuring 
 
On 1st June 2009 the Directors of Metic Group PLC (AIM: METC), ("Metic", "the 
Company" or "the Group") informed Shareholders that following the alleged 
failure by Northern & Western Insurance Company Limited ("N&W") to deliver 
funds in accordance with the contracted and guaranteed Stand-by Letter of 
Credit, Tenon had been appointed to conduct a complete review of its business 
operations. 
 
In conjunction with this activity, the Company also appointed GM Business 
Advisors to review restructuring proposals based on the scenarios that could 
result from the Tenon report. 
 
As a result of these two initiatives, the Board has been advised that eight 
existing contracts and seven contracted pipeline projects can be protected on 
the basis that the Melayway and Space Decks subsidiaries are placed into 
administration. The Portal division will remain unaffected by the proposed 
restructuring. 
 
As a result of the proposed re-organisation, the projected gross income will be 
materially down for the seven months to the 31 December 2009. 
 
To service the reduced revenue stream, the Company has been counselled on the 
need to reduce its current headcount of 65 to 29. Combined with the 30 
redundancies already made, the annualised payroll for the Group will have been 
reduced from a high of GBP4.65million to GBP1.44million. 
 
With regards working capital to complete the restructuring, the Board is 
currently talking to its Bank, its major Shareholders and advisors with regards 
the most efficient mechanism for meeting the business's ongoing funding needs. 
 
Paul Williams, CEO of Metic, commented: 
 
"Based on a full a thorough review of our business, the conclusion of our 
advisors is that the interests of all Shareholders will be best served by the 
course of action outlined above. Whilst we appreciate the implications of the 
advisors' findings touch more of the business's underlying operations than 
originally envisaged, the Board has been left little room for manoeuvre." 
 
- ends - 
 
Further information: 
 
UK 
 
Joint Brokers 
 
Old Park Lane Capital PLC Forbes Cutler T: +44 20 749 38188 
 
Seymour Pierce John Depasquale T : +44 207 10 78000 
 
UK Media 
 
gth Communications Toby Hall/Christian Pickel T: +44 207 153 8039 
 
 
 
END 
 

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