THE High Court in Northern Ireland has approved a scheme of arrangement which will allow Andaman to divide the assets of the group between two new holding companies.
The companies, Andaman Resources and Transport Systems, are in the process of formation. Shareholders have already approved the split. The group is unable to pay dividends because there is a deficit of £692,354 in its revenue reserves. The split will allow the transport company to pay dividends provided it generates sufficient profits.
Andaman, Resources will now acquire the group's natural resources assets and minerals exploration business. It will also be entitled to its share of any benefits from the current litigation, being pursued by Andaman, and its partner, Glencar Exploration, in relation to their joint ownership of mineral interests in Co Mayo.
The two companies have taken action against Mayo County Council, which imposed a mining ban in the area of their prospecting licences in 1992. The High Court subsequently ordered a removal of the ban. The claims against the council could amount to £3 million. If the claims succeed, Andaman would be entitled to 35 per cent. Accumulated losses arising from Andaman's exploration activities will now reside in Andaman Resources.
When the legal formalities for the split have been finalised, both Andaman Resources and Transport Systems will be seeking to, have dealings in their shares on OFEX in London.
Transport Systems will seek a listing for its shares on the Alternative Investment Market in London after completion of its accounts for the year to March 31st, 1996.
