Monday, January 9, 2012

News: Oak considers compensation claim

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With insufficient working capital and insufficient available resources, Oak Holdings is taking legal advice over the cancelled contract to manage the Rother Valley Country Park in Rotherham.

In October, Oak Holdings was temporarily suspended from the AIM stock exchange after Rotherham Metropolitan Borough Council terminated the short term lease and associated management agreement for the park.

Shares in the company behind the failed YES! Project remain suspended whilst the financial position of the company remains unstable and its future uncertain.

The operation of the well visited park was Oak's primary source of revenue after Oak took over the management as part of the developer agreement for the proposed £350m leisure development on the adjacent Pithouse West site.

The developer agreement was terminated by the council in January last year after Oak made a material lack of progress on what was to be the largest undercover leisure based scheme in Europe.

The management of the park has been brought back under the direct control of the council.

A statement to the stock exchange, said: "The Oak Board has reviewed the contract to manage RVCP and has taken legal advice with a view to ascertaining whether it may be entitled to compensation from Rotherham Metropolitan Borough Council in respect of contractual and other matters arising from the early termination of the contract.

"The precise amount of the claim is not yet certain and, accordingly, there is no certainty as to the outcome."

In a recent council meeting, the cabinet member for Regeneration and Environment explained that the termination of the contract was instigated by the council and not by mutual consent and that it was not anticipated that there would be any budget implications resulting from the termination.

Oak is currently generating insufficient working capital and has insufficient available resources to meet its existing and ongoing liabilities and has therefore sought assistance from third parties.

They recently drew a series of small secured loans from a group of lenders led by Yorke & Hartford Limited which total £36,135. Other lenders include Mr Uday Nayak and companies associated with him. This lending group has previously lent the Oak Group a net aggregate of £208,606 (excluding accrued interest) which remains outstanding.

In a half yearly report in July 2011, the company posted a pre-tax loss of £209,000 for the six months to the end of April 2011, compared to a £131,000 loss in the same period last year.

Since the termination of the developer agreement, the council has selected new preferred developers for the site who intend to create a unique culture and leisure development based on the "Visions of China."

Oak Holdings website
Rother Valley Country Park website

Images: rvcp.co.uk

1 comments:

darren,  July 17, 2012 at 6:59 PM  

can i sue oak holdings

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