Service Point Solutions issues letter to Spain’s S.E.C.

Letter is
dated November 18^th.

This letter
was also filed with Spain’s stock exchange.

Letter is in
Spanish.

File can be
uploaded to Google Translate; have at it if you want to see what it says in
English!

Link to
letter:

Nota de Prensa
Carlos García Conde
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2013-11-15T19:23:00Z
2013-11-15T19:23:00Z
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https://drive.google.com/file/d/0B81al4kFAU9JYlBabEZvRW9aa0E/edit?usp=sharing

Updated info (this was added after this post was originally published):

I wasn’t planning to make any comments about the information in this letter, but, after reading the English translation again, I decided to make some comments.

This next “stuff” comes from different
paragraphs that were in the above-referenced letter. As you can see, I’ve translated these
paragraphs, and, as I normally do, I did that by using Google-Translate. As always, I caution readers that
Google-Translate does not produce perfect translations. (And, that’s an understatement, for
sure.) The only official version of the
letter is the Spanish language version!

The decision of
the Board of Directors of foster care apply Article 5a of the Bankruptcy Act
was a result of communication from entities financial part of the syndicated
loan maturing acceleration advance thereof. Following the communication of
early maturity, is announced the execution of the guarantees of the
subsidiaries in the United Kingdom, the United States, Norway and Sweden, the
subsequent appointment by the agent bank for an administrator (Ernst &
Young LLP) to manage GPP Capital Plc British matrix and transferring the
subgroup actions Norwegian and Swedish operating subsidiary that British parent.
Following these changes, in fact, has disrupted the flow of funds to Service
Point Solutions SA from affiliates that provided a positive EBITDA.

At the date of
this reply, Service Point Solutions, SA retains ownership of Capital GPP
actions Plc, and therefore above the other companies, however, the appointment
of a management involves four subsidiaries is under the management and
responsibility of Ernst & Young LLP

To defend
subsidiaries managed by Ernst & Young LLP, in the course of the last days,
it has submitted a request for refuge to Article 5a of the Bankruptcy Act of
the subsidiary Spanish and proceeded to the formal request for a pre-bankruptcy
of the subsidiary German (“Insolvenz in Eigenverwaltung”),
with the aim of committing a restructuring operational and economic. During
this period, the companies keep administration own and continue operating and
serving their customers as to date in line with its business plans.

As communicated
on November 15, 2013, we received information that the activity of the group’s
U.S. subsidiary, currently under the administration of CS has been suspended.
The e-Service Point Solutions SA at its meeting held on 11 November with EY,
current GPP administrator Capital Plc, has requested information additional to
the current situation of the U.S. subsidiary and intends to report the market
as soon as you have concrete news about it, reserving all legal proceedings
within reach in case of administrator’s responsibility. The subsidiary American
accounts for 8% of total Group sales Service Point.

Blog Publisher’s
comments:

So, it “sounds
like” the SP USA and SP UK subsidiaries were previously owned by a U.K-based
holding company, GPP Capital PLC (owned by SPS) and that two of SPS’s other
subsidiaries, SPS’s operations in Norway and in Sweden, were recently
transferred to that same U.K.-based holding company. And, apparently, the firm of Ernst &
Young was employed to “manage” the affairs of that holding company; that engagement,
apparently, was at the direction of SPS’s lending group.

Regarding the
information set forth in these sentences…….

As communicated on November 15,
2013, we received information that the activity of the group’s U.S. subsidiary,
currently under the administration of CS has been suspended. The e-Service
Point Solutions SA at its meeting held on 11 November with EY, current GPP
administrator Capital Plc, has requested information additional to the current
situation of the U.S. subsidiary and intends to report the market as soon as
you have concrete news about it, reserving all legal proceedings within reach
in case of administrator’s responsibility.

Nota de Prensa
Carlos García Conde
0
0
2013-11-15T19:23:00Z
2013-11-15T19:23:00Z
1
639
3646
Proactive Management
30
8
4277
14.0

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JA
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Regarding the
information set forth in these sentences, I am very curious about this
information – a) who is “CS”, and b) SPS makes it sound like it did not know
that SP USA’s operations had been shut down on November 8^th and did
not know about that until November 15^th (I guess they don’t visit
Repro 101 very often!); they also say that the current administrator of GPP
Capital Plc has requested additional information about the current situation of
SP USA. Remarkable! Could it be that SPS’s management team in
Spain did not have any part in the decision to shut down SP USA’s operations?

Reprographics 101

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