Business Weekly - Cambridge, UK

The cash cadaver that is stricken Cambridge telecoms business Ionica is about to deliver up more gravy from the grave for shareholders.

Disproving the theory that there are no pockets in a shroud,  Ionica – which went bust owing around £250m in 1998 – has already returned £38.2 million to shareholders. And more is on the way. Micadant plc – formed as a vehicle to realise Ionica’s assets – reports “significant progress” in the last 12 months.
Chairman Tony Coleman says in Micadant plc’s annual report that following the successful conclusion in August 2006 of a deal to realise additional value from its investment in Ionica, the net asset value of Micadant has increased to approximately £4 million (2.2p per share) as at March 31, 2007 from £2.3m (1.3p a share)  year-on-year.

The administration order over Ionica was discharged in January – slightly later than anticipated – and since then the supervisors and committee have worked towards resolving what Coleman calls “complex taxation and legal matters to allow for the release of the remaining Ionica funds to Micadant and other creditors.”

He said final resolution of these matters would directly determine the amount and timing of any distribution Micadant can make to shareholders but added: “We now expect receipt of significant funds from the Ionica estate during the latter part of 2007 and propose to distribute funds to shareholders shortly afterwards in a manner to be determined.”

The objective remained to maximise and accelerate payments to shareholders, he added.
Three of the Micadant directors who had helped realise assets for shareholders – including Ionica founder and MD Nigel Playford – have stood down from the board following the transfer of Ionica’s residual estate to the Ionica Scheme of Arrangement under the direction of the scheme supervisors and committee in January.