Fairpoint secures required funding to resume trading
A risk capital provider has stepped in to provide funding to legal services firm Simpson Millar after it its owner's bank denied it support.
Debt management firm Fairpoint acquired Simpson Millar in 2014. In late July this year, Fairpoint’s bank, AIB Group, announced it was unwilling to provide the level of on-going support needed to fund the legal firm.
This meant Fairpoint had to suspend trading its shares on the London Stock Exchange until it could sign-off the audit of its annual report and accounts for the year ended 31 December 2016.
This was due to an AIM rule that states: “An AIM company must publish annual audited accounts which must be sent to its shareholders without delay and in any event not later than six months after the end of the financial year to which they relate.”
On July 3, Fairpoint announced Doorway Capital had taken over its relevant debts from AIB and would fund up to £5m to Simpson Millar for additional working capital.
However, Fairpoint’s full accounts are yet to be published therefore they are still unable to trade.
Fairpoint owns several other companies including Writefully Yours, offering PPI claim services, Debt Free Direct, a debt management firm, and Holiday Travel Watch, a free advice on holiday complaints.