Ottoman handing back 2p per share

Ottoman Fund is to return approximately £2.7m of capital, or 2 pence per share, to shareholders on the register as at 4 March 2016, with the shares expected to trade ex-entitlement on 3 March 2016 and payment expected to be made on 6 April 2016 or as soon as practicable thereafter.  This return of capital represents proceeds from the Riva and Bodrum sales announced earlier.

Following the payment of this distribution, the Group’s  principal assets will comprise Jersey bank balances of approximately £3.9m, a loan to Mandalina that could be satisfied by the  approximately £1m that we believe Mandalina holds in a Turkish bank account, and a claim against the Company’s former chief financial officer for approximately £1m. In the Group’s financial statements, the Mandalina loan balance and the claim against the former CFO have been fully provided against, which reflects the uncertainty over their ultimate collection. The Company currently has collection proceedings underway against both Mandalina and the Company’s former CFO to recover these amounts. The Company’s potential liabilities following the distribution could total £1.65m and may include possible Turkish tax liabilities and third party claims. Any future distributions will be contingent on the Company’s progress in resolving the Group’s tax liabilities, prevailing in the collection proceedings that are now pending, exchange rate movements, and concluding the various legal cases now pending in Turkey. For now it is premature to offer a view as to the likely outcome of these various matters.

Over the next several weeks, they will be sending a circular to shareholders seeking to extend the life of the Company so they can continue our efforts to recover Company’s assets and make further distributions to shareholders.

OTM : Ottoman handing back 2p per share

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