AIM-listed Itsarm has announced it will enter compulsory liquidation after careful consideration.
The company said in a statement:
“The directors consider that, taking into account the Company’s contingent and prospective liabilities, there is a significant risk that creditors of the Company would suffer detriment if the Company was not placed into a formal insolvency procedure immediately.”
Itsarm shares were suspended and restored last week as the company held a vote on voluntary liquidation. However, directors felt that a voluntary liquidation could lead to trading losses that would be to the detriment of creditors.
Itsarm shares were down 33% on Monday and have lost 98% of their value this year.