Cazoo Group will hold an EGM on July 2 where shareholders will vote on a proposal to wind up and liquidate the company.

The board has voted unanimously in favor of these measures.

In a filing to the New York Stock Exchange on June 21, the company told shareholders: The board unanimously recommends that you vote ‘FOR’ the proposal to approve the winding up, the appointment of the voluntary liquidators and the remuneration of the voluntary liquidators.”

Neema Griffin and David Soden of Teneo Financial Advisory Limited are set to be appointed joint voluntary liquidators of Cazoo.

In the letter to shareholders, Cazoo CFO Gareth Purnell wrote: “The board of directors of Cazoo Group Ltd has unanimously determined that the winding up, the appointment of the voluntary liquidators and the remuneration of the voluntary liquidators is advisable and in the best interests of the company and its stakeholders and directed that the winding up proposal be submitted to the company’s shareholders for approval.”

Cazoo was delisted by the New York Stock Exchange on June 3. The company’s Class A ordinary shares are currently trading on the OTC Pink Marketplace.

Cazoo Group also outlined some of the risk factors of voting for winding up and voluntary liquidation, explaining that shareholders were unlikely to receive any distributions.

In the statement, the company said: “If the winding up proposal is approved and the company is wound up, we expect that our equityholders will not receive any distributions for the Company’s shares or warrants. Under Cayman Islands law, before a company may make any distribution to its equityholders, it must pay or make reasonable provision to pay all of its claims and obligations, including all contingent, conditional or unmatured contractual claims known to the company. For example, we will need to pay the holders of our Senior Secured Notes in full prior to us making any payments to lower-ranking classes of creditors, like our shareholders and warrant holders.”

“In addition, funds will be retained to pay ongoing operational and liquidation costs; payments to service providers and any continuing employees or consultants; taxes; and legal, accounting and consulting fees. We also expect to incur corporate and administrative costs and expenses associated with winding up the company and its subsidiaries.

“In addition to the liabilities of which we are aware, we may also be subject to potential liabilities relating to indemnification obligations, if any, to third parties or to our current and former officers and directors. Given the known amounts owed to the holders of our Senior Secured Notes, the amounts associated with continuing our operations and eventual winding down the company, and that we may incur additional unexpected expenses, we do not expect that our equityholders will receive any distributions for their shares or warrants.”

Earlier this month, the AIM Group reported that used car marketplace Motors.co.uk was interested in purchasing the Cazoo brand.

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