Tanfield Group PLC Snorkel Investment Update (0663R)
24 Octubre 2019 - 08:44AM
UK Regulatory
TIDMTAN
RNS Number : 0663R
Tanfield Group PLC
24 October 2019
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement via a Regulatory Information Service ("RIS"), this
inside information is now considered to be in the public domain
Tanfield Group Plc
("Tanfield" or the "Company")
Snorkel Investment Update
The Board of Tanfield (the "Board") is updating the market
regarding legal proceedings that have recently been served on Ward
Hadaway, the Company's former solicitor, in relation to the firm's
role in the transfer of Tanfield's Powered Access Division to
Snorkel International Holdings LLC ("Snorkel") (the "Joint
Venture") in October 2013.
Following the Joint Venture between Tanfield and Xtreme
Manufacturing LLC ("Xtreme"), a company owned by Don Ahern of Ahern
Rentals Inc ("Ahern"), Tanfield became a 49% shareholder in the
equity of Snorkel.
As reported in the Snorkel Investment Update on 22 October 2019,
Snorkel and SKL Holdings LLC ("SKL"), the 51% shareholder in
Snorkel, have brought a claim against Tanfield in Nevada in which
they allege that the Company has refused to comply with its
contractual obligations relating to a purported call option which
sought to acquire the Company's membership interest in Snorkel for
an option price of $0 (nil) as well as purporting that payment of
the priority amount and preferred return (collectively the
"Preferred Interest") is not required (the "US Litigation").
As a result of the issues arising from the US Litigation,
Tanfield has been seeking to preserve its position against Ward
Hadaway as, depending on the outcome of the US Litigation, the
Company may need to hold the firm to account for its role in and/or
advice to Tanfield in relation to the Joint Venture transfer. Due
to time limitation issues, and because a suitable Standstill
Agreement which would have fully protected the Company could not be
agreed, it became necessary for the Company to issue and serve a
claim against Ward Hadaway in the English High Court in order to
ensure that the Company's rights were fully protected pending the
outcome of the US Litigation. It is the intention of the Board to
seek a stay of the claim, pending the outcome of the US Litigation,
as the outcome of that litigation will have a direct and material
impact on the Company's claim, including the quantum of the
claim.
At this stage it is unknown if (and when) a stay will be
obtained, but the Board of Tanfield continues to seek advice and
will vigorously protect its position, if necessary, and will
provide further updates to shareholders as and when
appropriate.
For further information:
Tanfield Group Plc 020 7220 1666
Daryn Robinson
WH Ireland Limited - Nominated Advisor / Broker
James Joyce / Lydia Zychowska 020 7220 1666
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END
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(END) Dow Jones Newswires
October 24, 2019 09:44 ET (13:44 GMT)
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