Piper Homes has paid £50,000 to fund the initial costs of pursuing the proposals, with a further £50,000 payable once the CVA has been approved
Midlands-focused Piper Homes PLC is considering a listing on AIM through a reverse takeover of (), which has filed for a Company Voluntary Arrangement (CVA) ahead of any transaction.
Regional housebuilder Piper has been established for fifty years and built over 1,000 homes in middle England.
Ashley House has been trying to arrange funding for its affordable housing business after its modular arm went into administration and two other businesses were sold but said attempts have been hampered by the coronavirus outbreak.
Talks have been underway with Piper Homes for about two months, said the statement.
Shares in Ashley House are currently suspended on AIM.
Ashley House’s board are recommending the CVA as a way to avoid administration or liquidation and to achieve the best result for its shareholders.
Piper Homes has paid £50,000 to fund the initial costs of pursuing the proposals, with a further £50,000 payable once the CVA has been approved and the 28-day challenge period has passed.
If the CVA is not approved, the reverse takeover will not go ahead, said the Ashley House statement.