Chams Plc, a leading integrated identity management, payments system and solutions provider, has announced the successful completion of its balance sheet restructuring exercise.
This is according to a notification issued by the company which reads: ‘’ This is to inform the Nigerian Exchange Limited (The Exchange) and the investing public that following the receipt of regulatory approvals, the Balance Sheet Restructuring exercise by Chams Plc which was approved by a special resolution at the Extra-Ordinary General Meeting of the Company held on April 24, 2018 has been completed.’’
In light of the above, the exercise was executed in the following manner;
- The Balance Sheet Restructuring Account (“BSRA”) was created for the purpose of effecting all necessary accounting entries in line with statutory requirements
- The sum of N5,458,750,000 as at October 31,2017 was transferred from the Share Premium as a credit to the BSRA
- The negative balance of N5,458,750,000 as at 31st October 2017 was transferred from the Retained Earnings Account to the BSRA
- The Solicitors to the Balance Sheet Restructuring sought an order or orders to the following effect from the court
- An order of the Court confirming the above stated Balance Sheet Restructuring of Chams Plc was approved by Special resolution of its shareholders
- All incidental, consequential and supplemental orders as are necessary to ensure that the Balance Sheet Restructuring were fully and effectively implemented
- The Directors of the Company were authorized to take all actions that were within their powers and/or necessary to effect the Balance Sheet Restructuring.
What you should know:
- A balance sheet restructuring refers to the sort of multiparty agreement that takes place when equity and debt holders of a firm agree to concessions that will make the balance sheet stronger.
- It is pertinent to note that the decision to restructure the balance sheet of Chams Plc was taken at the Extraordinary General Meeting of the shareholders which held on 24th of April, 2018 at ACE-Olivia Hall, City Mall, Onikan-Lagos.