ANC Re-Financing Sept Oct 2001

ANC re-financing
At the end of September 2001 ANC was re-financed.
The process was broadly as follows.
1. The owners of the holding company were a 75% holding by Prudential Ventures and past and present members of the management of ANC. It was reported that when Prudential Ventures invested, the total funding requirement was £75m including the loans provided by the Bank of Scotland. The precise structure is not public.
2. The holding company, ANC Business Services Group, was placed in receivership by its bankers, the Royal Bank of Scotland.
3. The operating subsidiary companies were then sold to a new company, – Ever 1604 Ltd. We do not know the terms but it is almost certain that a ‘nil’ or very low value was placed on the shares in the business. The operating companies have continued to trade in the ANC names. The Royal Bank of Scotland has provided finance.
4. Ever 1604 Limited is thought to be owned by the Royal Bank of Scotland and the management of ANC, in particular Mark Gittins, David Cranmer and Mark Mitchell. We do not know the precise holdings or if others are involved. In effect this has been a management buy out with support from Royal Bank of Scotland.
5. t seems likely that the shareholders in the holding company will get nothing and the Prudential will take a significant ‘hit’.
Colleagues may recall that, in the note on ANC’s 1999 accounts, rumours of difficult trading were noted. The results are in stark contrast to many of the press statements that have been issued in recent times.
It must be assumed that after a very rapid decline in the Company’s performance the Royal Bank of Scotland will be monitoring the business closely. Until solid results demonstrate the contrary the company must be regarded as ‘flaky’. Given past history, company press releases should not be regarded as an indicator of its financial condition.