{"id":4151,"date":"2015-12-02T08:07:14","date_gmt":"2015-12-02T08:07:14","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=4151"},"modified":"2017-01-26T11:19:21","modified_gmt":"2017-01-26T11:19:21","slug":"atlas-development-shuts-loss-making-kenyan-subsidiary","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/atlas-development-shuts-loss-making-kenyan-subsidiary\/","title":{"rendered":"Atlas Development Shuts Loss Making Kenyan Subsidiary"},"content":{"rendered":"

Atlas <\/span><\/span>Development & Support Services Limited<\/span> has announced the decision to place its loss<\/a> making Kenyan subsidiaries into liquidation by way of a Creditors Voluntary Liquidation following the downturn in the oil and gas industry, market adjustments and the failure of certain key clients to settle debts.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

Atlas Development adds it has seen increased creditor pressure has led to the decision to close Kenyan operations and focus all of the Company’s administrative functions and activities in Ethiopia for the time being.\u00a0<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

According to CEO Carl Esprey this decision will enable the Company to focus its resources and management on the Company’s newly formed industrial division and its joint venture<\/a> with Orchid Business Group targeting the resources space (in particular potash development and infrastructure projects).\u00a0<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

\u201cSince the downturn in the oil and gas market, we have found that clients are no longer placing a premium on our high quality services and are demanding terms which are not economically viable. \u00a0In addition to this, late payment by certain operators and increasing creditor pressure in Kenya necessitate and justify this shift at this time to serve the best interest of the long term development of the business and shareholders,\u201d says Esprey.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

The closure of the Kenyan subsidiaries, Ardan Logistics Kenya Ltd, Ardan (Medical Services) Ltd and Ardan (Civil Engineering) Ltd Atlas says will improve the group’s overall cost base.<\/span><\/span><\/p>\n

Atlas Development will however still maintain its listing<\/a>\u00a0on the GEM segment of the Nairobi Securities Exchange and hopes to maximise value for its Kenyan shareholders through the successful expansion in industrial projects and operations in Ethiopia. Following this latest announcement the shares of Atlas Development (ADSS) on the Nairobi Securities Exchange opened 8.57 percent lower than their previous value meaning Atlas has lost 85.77 percent since the beginning of the year.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

\u201cWe have been focusing on building a strategy to best allocate our existing assets to build shareholder value and are looking forward to capitalising on opportunities within the newly established industrial division and the JV with Orchid, which we believe will bring more consistent revenue to the business and allow us to best utilise our existing expertise,”\u00a0Carl Esprey concludes.<\/span><\/span><\/p>\n

\u00a0<\/span><\/span><\/p>\n

Atlas Board adds it believes the opportunity in Ethiopia is highly compelling and offers the Company and its supportive shareholders the best opportunity to build value both in the short and long term.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Atlas Development & Support Services Limited has announced the decision to place its loss making Kenyan subsidiaries into liquidation by way of a Creditors Voluntary Liquidation following the downturn in … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":2007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[3810,178,3809,196,809,990,1252,1440,1574,1883,3761,3808],"class_list":["post-4151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-ardan-civil-engineering","tag-ardan-logistics","tag-ardan-medical-services","tag-atlas-development-support-services","tag-ethiopia","tag-geothermal","tag-kenya","tag-logistics","tag-mining","tag-oil-prices","tag-orchid-group","tag-potash","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/atlas.png?fit=509%2C322&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-14X","jetpack-related-posts":[{"id":2078,"url":"https:\/\/www.oilnewskenya.com\/index.php\/atlas-development-and-support-solutions-expects-kenyan-listing-by-mid-december\/","url_meta":{"origin":4151,"position":0},"title":"Atlas Development and Support Solutions expects Kenyan listing by mid December","author":"Samuel Kamau Mbote","date":"November 24, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Oil and gas solutions services provider Atlas Development and Support Solutions has said it expects a dual listing on the Growth Enterprise Market Segment ('GEMS') of the Nairobi bourse by December 15th as it continues with the last stages of discussions with According to the chief executive officer\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/nse-1.jpg?fit=595%2C300&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/nse-1.jpg?fit=595%2C300&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/nse-1.jpg?fit=595%2C300&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":1950,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oilfield-logistics-completes-acquisition-of-ardan-logistics-kenya-limited\/","url_meta":{"origin":4151,"position":1},"title":"Africa Oilfield Logistics completes acquisition of Ardan Logistics","author":"Samuel Kamau Mbote","date":"October 23, 2014","format":false,"excerpt":"AIM listed African focussed support services and logistics company Africa Oilfield Logistics Ltd has announced the acquisition of the entire issued share capital of Ardan Logistics Kenya Limited following shareholder approval being obtained in respect of all the resolutions proposed at the Company's general meeting held earlier today. According to\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/africa-oilfield-logistics.png?fit=462%2C300&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2006,"url":"https:\/\/www.oilnewskenya.com\/index.php\/african-oilfield-logistics-limited-rebrands-to-atlas-development-support-services-limited\/","url_meta":{"origin":4151,"position":2},"title":"African Oilfield Logistics Limited rebrands to Atlas Development & Support Services Limited","author":"Samuel Kamau Mbote","date":"November 6, 2014","format":false,"excerpt":"African focused support services and Logistics Company formerly known as Africa Oilfield Logistics Limited announces that it has completed its change of name to Atlas Development & Support Services Limited and effective 28th October. This follows the acquisition of the entire issued share capital of Ardan Logistics Kenya Limited by\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/atlas.png?fit=509%2C322&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1837,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-oilfield-logistics-ltd-seeks-to-fully-acquire-ardan-logistics-kenya-limited\/","url_meta":{"origin":4151,"position":3},"title":"Africa Oilfield Logistics Ltd seeks to fully acquire Ardan Logistics Kenya Limited","author":"Samuel Kamau Mbote","date":"September 28, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Africa Oilfield Logistics Ltd has announced that the Board has decided to exercise the call option granted to it pursuant to the framework and option agreement announced on 28 March 2014 to acquire the entire issued share capital of Ardan Logistics Kenya Limited. 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