Fri, 15 Nov 2024 | ADMINISTRATION
A Lincolnshire manufacturer has been bought out of administration saving over 100 jobs.
MTAG (Holdings) Limited and Electric Future Group appointed Gareth Harris and Deviesh Raikundalia of RSM UK Restructuring Advisory LLP as joint administrators on July 12th this year.
Formed in Coningsby in Lincolnshire twelve years ago, MTAG Composites is the trading company in the group which manufactures composite parts for the rail, aerospace, automotive, construction and leisure sectors.
This includes train interiors, aircraft seating and pleasure craft for blue-chip clients such as Hitachi and Bombardier.
According to the company website MTAG has developed a complete in-house production system with the capability to develop and construct its own moulds & Jigs, produce from one off’s to hundreds of thousands of moulded composite parts using a wide variety of resin systems.
Following RSM’s appointment operations were temporarily ceased to assess the trading position. However, since July 19 it has continued to trade the composites business with the support of its skilled workers and key customers whilst seeking a sale of the business and assets.
As a result of that process the business and assets of MTAG Composites were sold on November 14 to a new entity called GRP Alliance. It intends to continue to trade from the existing site in Lincolnshire and have the first option to purchase the assets of MTAG (Holdings).
Raikundalia, Restructuring Advisory Directory at RSM, said: “We are delighted to have preserved specialist employment in the local economy. We also welcome the new investment that the purchaser is providing for MTAG, which ought to secure its long-term future and create a platform for growth.”
MTAG’s latest available accounts show that the firm employed around 120 people before it entered administration. Documents show that the firm owed over £4.3 million to creditors when the administrators were called in.
RSM was advised by Sarah Foster, Natalie Bromley and Jawad Ilyad from Addleshaw Goddard solicitors, with support from Sanderson Weatherall agents.
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