Tuesday, March 03, 2009

McGivern steps down as Newfound warns of risk of collapse

Jayne McGivern has resigned as CEO of AIM-listed resort developer, Newfound, as the company warned of a risk of collapse.

Article on Property Week website

Newfound said that McGivren’s departure was a result of it restructuring of its operations and management to cut costs, and warned that without new funds, it would ‘cease operations’.
It said this morning: ‘Unless new finance can be found for the group over the coming months, there is a risk that the Company will exhaust its cash resources, in which case it will need to cease operations.’

McGivern, a former Multiplex UK chief executive who took over last year, will remain on the board of the company but be replaced in the interim as CEO by Stephen Bentley, who is currently the finance director.

The day-to-day management of the company will be outsourced to a management company, and then Bentley will step down from his role as CEO and finance director to become a non-executive director.

Richard Foley has also resigned as a director, but will remain an employee of the group overseeing Newfound’s Caribbean projects.

John Morgan, acting chairman of Newfound, said: 'It is clear in the current financial market that property development companies are struggling to raise capital to fund projects. Newfound is no exception to this and the board has decided that the company needs to restructure its operations and executive management to reduce its expenditure.'

___________________________

STATEMENT TO THE LONDON STOCK EXCHANGE

RNS Number : 1740O

3 March 2009
Newfound N.V.
('Newfound', the 'Company' or the 'Group')
Board Changes and Restructuring

Newfound N.V. (AIM: NFND) announces that Jayne McGivern has resigned as an Executive Director and Chief Executive Officer of Newfound NV with immediate effect. Ms. McGivern will however stay on the Board of the Company as a Non-Executive Director. Richard Foley has also resigned as a Director with immediate effect although he will remain an employee of the Group overseeing Newfound's Caribbean projects.

For an interim period, Stephen Bentley, who is the Finance Director, will also assume the role of Chief Executive Officer while the Board seeks to outsource the day to day management of the Group's activities with a management company or similar. Upon procurement of such a management contract, Mr. Bentley will step down as Finance Director and Chief Executive Officer and become a Non-Executive director.

John Morgan, Acting Chairman of Newfound NV, commented today:
'It is clear in the current financial market that property development companies are struggling to raise capital to fund projects. Newfound NV is no exception to this and the Board has decided that the company needs to restructure its operations and executive management to reduce its expenditure. As a result, Jayne McGivern moves to a non-executive role while Stephen Bentley will take over as CEO on a part-time basis whilst the Board looks to put in place a management contract.

Jayne will continue to have oversight of the plans for the Company's main assets in the Caribbean although, as a non-executive director, she will not work on the project day-to-day. I would like to thank Jayne for all her work during a very difficult period for the Company. She has achieved much in the last 6 months and I am delighted that we will retain her expertise on the Board.

I would also like to thank Richard Foley who has done sterling work on our Caribbean projects as the main planner behind the developments. Although Richard is leaving the Board, he will continue to oversee the Company's Caribbean projects.

Newfound remains a company with assets in the Caribbean that have real potential. I am pleased with the plans developed by the Company for those assets and with the progress made with the two projects. Nevertheless, it is a company with limited financial resources and the above board changes are designed to conserve those resources and allow it to maintain the priorities of continuing to service its debt, negotiating new finance and ensuring that the Company is well-placed when the development market recovers and credit becomes more readily available.

Unless new finance can be found for the Group over the coming months, there is a risk that the Company will exhaust its cash resources, in which case it will need to cease operations. The Board continues to evaluate the Company's financial options and will keep shareholders fully informed over the coming months.'


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