Following demands from Healthcare Locums (HCL) that minority shareholder Arundel show evidence for their claims that they have substantial backing from other shareholders to block HCL’s refinancing plan, Arundel has stated that they are not obliged to produce such evidence.

According to an Arundel spokesperson, there is no onus on Arundel to reveal details of shareholders opposing HCL’s refinancing plans.

However, HCL have hit back. An HCL spokesperson told Recruiter: “Arundel has claimed to speak for 21.6% of shareholders, but has not provided particulars of those shareholders whose support they claim when asked to do so. It is important that shareholders should understand that these claims remain unsubstantiated, despite requests from the company to back them up with evidence. This is the latest in a series of sensationalist and unsubstantiated claims by Arundel, a US hedge fund, which owns less than 1% of shares in Healthcare Locums.”

In a statement earlier this morning, Healthcare Locums said correspondence from Arundel had presented a “misleading” impression of its present situation.  

Referring to a letter sent to letter to HCL chairman Peter Sullivan on 19 August, Arundel demanded that HCL explore alternative refinancing solutions to the refinancing plan, it announced which HCL had said would provides the necessary cash and debt resources for readmittance to trade shares on AIM, made up of a £60m placing and an open offer of up to £4.25m. Arundelclaimed it had IVUs and assurances from other shareholders representing 22.1% of the shares. HCL says it had invited to substantiate this claim but had not done so.

HCL further adds that prior to the posting of the Circular to shareholders on 19 August 2011, it had explored a range of alternatives that would deliver in the timeframe available the optimum value for stakeholders and revise the company’s current capital structure to allow a strengthened business to move forward, adding the challenges facing the firm are both serious and time critical with any further delay in finalising a restructuring plan risking putting the company at serious risk and result in the cancellation of the company’s shares from trading on AIM.
 
An Arundel spokesperson told Recruiter: “We have firm expressions of support from other shareholders and our lawyers Clifford Chance have written to the board to assure the company’s management of that. It is evident from the chairman’s frantic last-minute efforts to enlist the support even of his adversaries amongst the shareholders that he is not confident about winning this vote.”

 
HCL’s general meeting takes place at 11.00 am on 12 September 2011.