Stone claims victory after court hearing
Simon Harbridge claims Stone Bidco liquidation approved by High Court
Stone Group's plans to liquidate former holding company Stone Bidco were rubber stamped by a High Court judge this morning, the PC builder's chief executive has told CRN.
Stone Bidco - a holding company set up as part of the 2008 MBO - was placed into administration back in August as Stone Group looked to tidy up its "unwieldy" balance sheet. A new holding company - Granite One Hundred Holdings - was set up as a replacement for the Bidco company.
But the administration process hit a snag when shareholders - including ex-CEO James Bird - said liquidating the company would mean they would lose significant sums of cash.
A vote of all Stone Bidco shareholders about the future of the company resulted in deadlock, meaning the case was referred to the High Court for a judge to decide in a court case which was heard this morning.
The judge this morning ruled that Bidco can proceed with its creditors' voluntary liquidation, according to Stone Group chief executive Simon Harbridge, who said the move was in line with what he expected.
CRN contacted the Birmingham High Court for confirmation, but was told details would not be filed for five working days after the hearing. Bird could not be immediately reached for comment on what - if any - action he and other shareholders will take following today's court hearing.
Harbridge told CRN: "I am pleased that the administrator was successful with the application to the court," he said. "After the previous deadlock in the creditors' meeting, hopefully matters can now progress to a rapid conclusion.
"None of this has any relevance for Stone Computers Limited in any event, but it is good that any remaining uncertainty there may have been in anyone's mind has been eliminated."
CRN understands that should any parties have any further issues, they should bring it up with the liquidator for investigation and conclusion. This would need to be done before any loan notes are distributed.
The aim of the administrator is to liquidate the company and distribute loan notes before the end of the year, CRN understands, but this is subject to the other shareholders not bringing anything new to the table.