The listed owner of law firms Rosenblatt and Memery Crystal has delivered a defiant message in the face of its biggest shareholder declaring that the business is effectively insolvent.
RBG Holdings said in a statement to the London Stock Exchange today that in response to ‘speculative’ comments that had appeared in the media, the company continues to trade and enjoy the support of its principal creditors. The statement confirmed that RBG is exploring ‘ongoing opportunities’ to strengthen its balance sheet.
It added: ‘The company has been engaged in discussions with its lender and other parties in relation to its options. It appointed financial advisers in Q4 2024 to assist with these discussions which are now well advanced.
‘Should an agreement be reached on the terms currently being negotiated, the board anticipates the company will have sufficient cash headroom for the foreseeable future. In the event the company cannot reach an agreement with its principal creditors, it will need to explore alternative financing options immediately.’
Ian Rosenblatt, who founded the eponymous firm, had his consultancy agreement terminated this week by RBG amid allegations that he had demonstrated ‘offensive behaviour unbecoming of a solicitor’. Rosenblatt said the RBG announcement amounted to ‘one big lie’ and accused the directors of making defamatory statements in an ‘attempt to damage my reputation’.
It was reported yesterday that Rosenblatt had filed a winding up petition to the High Court against RBG Holdings. Speaking in response to RBG’s public statement, Ian Rosenblatt said the company was insolvent and had been attempting to dispose of assets in recent months.
The week’s dispute has been devastating for the company’s share price, which is now just 1.05p – the lowest it has ever plunged since it listed in 2018. RBG began the week with shares priced at 2.75p.
