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If that situation arose fairly early in the process, then the Freehold Company would seek to replace Lindmead with another suitable investor which would then step into the shoes of Lindmead. We are confident we could achieve this: Northwood Hall is an extremely attractive investment for any White Knight.

 

In the worst case scenario, if Lindmead were to fall into insolvency and we were not to find another White Knight, the only cost to which participant shareholders are personally exposed is their joint and several liability to reimburse Triplark’s reasonable legal and valuation fees. 

 

However, this does not address the issue of ‘joint and several liability’. Right from the outset we have said that our enfranchisement does not expose participants to financial risk. Accordingly, when we serve the initial notice on Triplark, we have agreed with Lindmead that it will deposit with the company’s solicitors a sum sufficient to meet this contingency. The amount that Lindmead must place on deposit will be determined by the company’s legal and professional advisers.