STEC Shieldtech

TIDMSTEC

RNS Number : 7011U

Shieldtech PLC

20 October 2010

Shieldtech plc

("Shieldtech" or the "Company")

Appointment of Administrators

Following the announcement on 18 October 2010 regarding the suspension of the Company's shares, the Board is now providing an update. It regrets to announce that it has had to appoint joint administrators to the Company and its subsidiaries Aegis Engineering Holdings Limited and Aegis Engineering Limited.

As a result of the sustained fall in demand in the UK police market and the adverse impact on working capital, the Board has recently explored several options to improve the financial position of the Company and to realise value for the benefit of the Group's stakeholders. New invoice discounting facilities have been arranged with a major bank, to be used once the expected order flow in the UK market begins. The directors had also intended to raise additional equity finance to strengthen the balance sheet at the same time.

These plans were frustrated, however, when the Group's bank informed the directors that it intended to place in escrow the proceeds from the recently announced Turkish order as additional security for its term loan and overdraft. Without access to these funds, the Company's short term working capital needs have been severely affected. The directors have not been able to raise additional equity funds in the short time available to them, in view of the continued uncertainty of the future order position.

The Board has continued to vigorously explore all possible options to address its short and medium term financing requirements and has been in negotiations with a number of parties, including in relation to a possible sale of the Aegis business as a going concern. Prior to the Company's suspension of trading in its shares, it was hopeful that sufficient additional funding or a business disposal would be completed. It has now, however, become clear that neither solution can be achieved within the foreseeable future.

The Board has therefore regrettably decided to appoint Gareth Roberts and Paul Ellison of RSM Tenon Recovery, Reading office, as joint administrators to the Company and its subsidiaries Aegis Engineering Holdings Limited and Aegis Engineering Limited.

Contacts:

RSM Tenon Recovery, Reading

Gareth Roberts, Director Tel: 0118 953 0350

David Taylor, Senior Manager

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCFEAFSSFSSEES

Shieldtech (LSE:STEC)
Historical Stock Chart
Von Okt 2024 bis Nov 2024

Shieldtech (LSE:STEC)
Historical Stock Chart
Von Nov 2023 bis Nov 2024