Although we have already written independently to all our investors, Ward & Co wish to state that we delayed this communication to ensure that we spoke using fact rather than reacting to speculation, rumour or hype. We have spent the last two days with San Jose in Spain in discussions at director level, in the presence of lawyers representing both companies and the investors who have bought Malvas.
The outcome is that the voluntary arrangement, that was applied for in the court on Friday, is for Administration and not liquidation or bankruptcy or receivership. It is essential that the difference is understood because this arrangement is specifically to allow the company to trade their way out of a set of financial circumstances, restricted cash flow, brought about by delays in winning court actions on both El Pinet and Santa Ana. This move, which demonstrated professionalism and honesty, will protect the company's assets, the client's deposits and the continuance of the two projects concerned.
San Jose is an extremely asset rich company having over 300,000,000€ of unencumbered assets; their issue has been realising liquid assets to satisfy trade creditors. Administration allows the company time to arrange finance through a consortium of banks, a process that is well underway, and continue developing the two affected projects, El Pinet and Santa Ana.
Further, our investors are protected, not only by the laws covering the Voluntary Administration (regarding this they will be contacted independently by San Jose, their lawyers and the court) but also by their bank guarantees. Of course, we are not in a position to comment on any purchases made through other agents nor the conditions of their sales. However, our investors may rest assured that their deposits are safe, as they always have been, and we fully expect to see both projects re-started in the near future with our completion dates at Santa Ana and all other contractual arrangements intact.