Second Work out of the soup?
Article Date: Jul 30 2001Adviser Matrix Corporate has found a potential reversal deal for Second Works, the shell company formerly called Soup Works whose shares were recently withdrawn from Ofex, writes Robert Tyerman.
The company which could be reversed into Second Works, if the Matrix plan bears fruit, is believed to be an established food distribution business. The details and terms of the proposed deal have yet to be finalised.
The re-naming of Soup Works as Second Works followed the appointment of an administrator, who sold the company's operating subsidiaries and its name for an undisclosed sum. Matrix originally brought Soup Works to Ofex in 1998 at 10p a share, when the Sussex-based company had high hopes of developing a chain of fresh soup outlets for office workers in London and environs.
However, progress proved disappointing and the company lost £1.3 million in the year to June 2000, chalking up a further £129,000 deficit in the six months to December. The administrator was called in at the beginning of June and the shares, whose high point this year was 6p, were suspended at 2.5p.
The deal found by Matrix is understood to be subject to shareholders' approval and residual creditors accepting a Creditors' Voluntary Arrangement.
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