A Lincolnshire manufacturer has fallen into administration, with a buyer being sought for the business.
Gareth Harris and Deviesh Raikundalia of RSM UK Restructuring Advisory LLP were appointed as Joint Administrators of MTAG Composites Ltd, MTAG (Holdings) Ltd and Electric Future Group Ltd on Friday 12 July 2024.
Based in Coningsby, MTAG Composites is the trading company in the group and is a manufacturer of moulded composite parts for the rail, aerospace, automotive, construction and leisure sectors, producing items such as train interiors, aircraft seating and boats.
Whilst viable options were being considered, the administrators took the decision to temporarily cease day-to-day operations immediately upon their appointment.
Following an accelerated and detailed review of the financial position, the administrators have decided to recommence day-to-day operations on a limited basis to align with the timetable for an accelerated sales process.
Thus far, the administrators have made minimal redundancies but have retained all of the operational and production staff on a ‘lay-off’ basis. The administrators understand that employees had not been paid for some time prior to their appointment and they are working with the Redundancy Payments Service (RPS) to ensure that those affected receive their statutory entitlements at the earliest possible opportunity.
Gareth Harris, restructuring advisory partner at RSM UK and joint administrator, 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.”
Deviesh Raikundalia, restructuring advisory director at RSM UK and joint administrator, 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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