Damovo restructuring delayed by Enterprise Digital troubles; note trading prices decline

By Caroline Salls

Pittsburgh, April 10 - The Damovo Group said extended discussions with its informal noteholders committee regarding recent negative developments in its Enterprise Digital Architects SpA business will prompt a delay in the implementation of the company's restructuring, according to a news release from the Irish Stock Exchange.

Damovo said it has also seen a significant fall in the trading price of its notes.

According to the release, Damovo is continuing to discuss implementation of the restructuring terms with the committee, including an extension to the noteholders' standstill agreement, which expired on March 30.

The company and the noteholders reached the restructuring agreement on Dec. 11.

Damovo said it is working with its auditors to review the treatment of some contract revenues and associated costs and margins in Enterprise Digital's historic financial statements, and, while any resulting restatement of the financial statements may not have an immediate negative effect on that business's cash flows, any adjustments resulting from the review may reduce Enterprise Digital's net asset value as shown in the financial statements.

In addition, Maurizio Botinelli resigned from the boards of Damovo Group SA, Damovo I Sarl, Damovo II Sarl, Damovo III SA and Enterprise Digital Architects, effective March 29.

Damovo said Botinelli decided to seek alternative employment opportunities.

Damovo is a Glasgow, Scotland, information technology company.

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