Wed, 24 Jul 2024 | ADMINISTRATION
A Lincolnshire-based manufacturer of moulded composite parts for the rail, automotive, aerospace, construction and leisure sectors has fallen into administration, with efforts now underway to find a buyer.
MTAG Composites Ltd, MTAG (Holdings) Ltd and Electric Future Group Ltd fell into administration on July 12, with Gareth Harris and Deviesh Raikundalia of RSM UK Restructuring Advisory LLP appointed as joint administrators.
MTAG Composites, the trading company of the group, is based in Coningsby and produces items including boats, train interiors and aircraft seating. Upon the appointment of the joint administrators, operations were temporarily ceased while viable options were considered.
Following an accelerated, detailed review of the business’ financial position, day-to-day operations have now been restarted on a limited basis, aligning with the timetable set out for an accelerated sale process. So far, administrators have made minimal redundancies, but say that all operational and production staff have been retained on a “lay-off” basis.
Gareth Harris, RSM UK Restructuring Advisory partner, said: "The decision to recommence operations demonstrates the commitment of all stakeholders to attempt to save this business and the livelihoods of the staff.”
"Although not at full operational capacity, ongoing production will assist us in finding a buyer for all or part of the businesses."
Fellow joint administrator and Restructuring Advisory Director Deviesh Raikundalia added: "We have received significant interest in the acquisition of the business in the short time that we have been undertaking the sales process.”
"We are continuing to engage with all parties who have expressed an interest in acquiring all or part of the businesses.”
"Staff that we have retained since our appointment will continue to be paid and we appreciate the commitment and patience shown by the employees to date."
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