An international AIM-listed investment company which has “a net asset value of £15m” is set to be wound up.
Brainspark Plc – which has invested in Italy’s biggest water park and a proposed theme park development in northern Italy – faces compulsory liquidation following a High Court judgment.
Despite pleas from the director to grant the company an extra four weeks to settle its debts, Mr Registrar Nicholls ruled to proceed with a compulsory order.
However, the company – which has already informed the AIM of the decision – has vowed to appeal against the ruling and insists it will be able to pay off its creditors on February 3.
A spokesman said the company was left “shocked” by the judgment and has already appointed a lawyer to overturn it.
He said: “The company has seven days to appeal. It thought it had come to an agreement with its petitioners on Friday.
“The court order is £60,000 and the cash will be arriving in February, in which case they (the creditors) will be paid off on February 3.
“The company is highly profitable but it just doesn’t deal in cash.
“It was a shock to the company that the judge ruled against them.”
The company – which mainly concentrates on investment opportunities in Italy in the media, leisure, entertainment and financial services sectors – was set up in England in 2000.
At the High Court a company director had insisted: “We have sufficient assets to repay the debt – we are trying to raise money.
“We tried to do it (raise enough money) in December but it didn’t come through. But we will settle the balance within four weeks.”
The London-based company – whose share price today stood at 15p – announced in December that a large bond holder had agreed to convert its holding of £3.5m, plus accrued interest of £449,000 into 11m Brainspark ordinary shares.
This confirmation sent the investment group’s share price plummeting by about 23%.
At the time CEO and Brainspark chairman Alfredo Villa confirmed the company’s intention for 2012 was to become debt free.
According to Brainspark’s website one of its major investments was Mediapolis S.p.A. – a company which plans to build the biggest theme park in Northern Italy.
It has also invested in Ondaland – billed as the biggest water park in Italy.
Brainspark’s most recent financial accounts filed in December 2009 showed the company made a £200,000 loss.
By Andy Pearce
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