Monday, November 18, 2013
Letter is dated November 18th.
This letter was also filed with Spain’s stock exchange.
Letter is in Spanish.
File can be uploaded to Google Translate; have at it if you want to see what it says in English!
Link to letter:
Updated info (this was added after this post was originally published):
I wasn't planning to make any comments about the information in this letter, but, after reading the English translation again, I decided to make some comments.
This next “stuff” comes from different paragraphs that were in the above-referenced letter. As you can see, I’ve translated these paragraphs, and, as I normally do, I did that by using Google-Translate. As always, I caution readers that Google-Translate does not produce perfect translations. (And, that’s an understatement, for sure.) The only official version of the letter is the Spanish language version!
The decision of the Board of Directors of foster care apply Article 5a of the Bankruptcy Act was a result of communication from entities financial part of the syndicated loan maturing acceleration advance thereof. Following the communication of early maturity, is announced the execution of the guarantees of the subsidiaries in the United Kingdom, the United States, Norway and Sweden, the subsequent appointment by the agent bank for an administrator (Ernst & Young LLP) to manage GPP Capital Plc British matrix and transferring the subgroup actions Norwegian and Swedish operating subsidiary that British parent. Following these changes, in fact, has disrupted the flow of funds to Service Point Solutions SA from affiliates that provided a positive EBITDA.
At the date of this reply, Service Point Solutions, SA retains ownership of Capital GPP actions Plc, and therefore above the other companies, however, the appointment of a management involves four subsidiaries is under the management and responsibility of Ernst & Young LLP
To defend subsidiaries managed by Ernst & Young LLP, in the course of the last days, it has submitted a request for refuge to Article 5a of the Bankruptcy Act of the subsidiary Spanish and proceeded to the formal request for a pre-bankruptcy of the subsidiary German ("Insolvenz in Eigenverwaltung"), with the aim of committing a restructuring operational and economic. During this period, the companies keep administration own and continue operating and serving their customers as to date in line with its business plans.
As communicated on November 15, 2013, we received information that the activity of the group's U.S. subsidiary, currently under the administration of CS has been suspended. The e-Service Point Solutions SA at its meeting held on 11 November with EY, current GPP administrator Capital Plc, has requested information additional to the current situation of the U.S. subsidiary and intends to report the market as soon as you have concrete news about it, reserving all legal proceedings within reach in case of administrator's responsibility. The subsidiary American accounts for 8% of total Group sales Service Point.
Blog Publisher’s comments:
So, it “sounds like” the SP USA and SP UK subsidiaries were previously owned by a U.K-based holding company, GPP Capital PLC (owned by SPS) and that two of SPS’s other subsidiaries, SPS’s operations in Norway and in Sweden, were recently transferred to that same U.K.-based holding company. And, apparently, the firm of Ernst & Young was employed to “manage” the affairs of that holding company; that engagement, apparently, was at the direction of SPS’s lending group.
Regarding the information set forth in these sentences…….
As communicated on November 15, 2013, we received information that the activity of the group's U.S. subsidiary, currently under the administration of CS has been suspended. The e-Service Point Solutions SA at its meeting held on 11 November with EY, current GPP administrator Capital Plc, has requested information additional to the current situation of the U.S. subsidiary and intends to report the market as soon as you have concrete news about it, reserving all legal proceedings within reach in case of administrator's responsibility.
Regarding the information set forth in these sentences, I am very curious about this information – a) who is “CS”, and b) SPS makes it sound like it did not know that SP USA’s operations had been shut down on November 8th and did not know about that until November 15th (I guess they don’t visit Repro 101 very often!); they also say that the current administrator of GPP Capital Plc has requested additional information about the current situation of SP USA. Remarkable! Could it be that SPS’s management team in Spain did not have any part in the decision to shut down SP USA’s operations?
Posted by Joel Salus at 11:37 AM