Taxman blocks restructuring of struggling aerospace engineer Nasmyth
Coventry-based Nasmyth Group is scrambling to find a buyer as it teeters on the brink of collapse after a restructuring plan was blocked amid objections from HM Revenue & Customs.
A supplier of precision engineering services to the aerospace and defence industries is on the brink of collapse after its shareholder's plans to restructure the business were blocked amid objections from the tax authorities.
Sky News has learnt that prospective buyers of Nasmyth Group, a Coventry-based company bought by Rcapital last year, have been asked to submit offers by the close of business on Wednesday.
The emergency sale process comes days after the High Court rejected a proposed restructuring plan that would have 'crammed down' creditors including HM Revenue & Customs (HMRC).
The taxman is owed nearly £3m by Nasmyth, according to court filings, and HMRC is understood to have decided to object after considering its position.
Nasmyth provides complex precision engineering services to a range of industries which also includes space and automotive.
It saw revenues badly impacted by the pandemic because of its extensive operations in the civil aerospace sector.
The company is now said to be generating annual sales roughly half of its historical peak of £85m.
In a statement on the Nasmyth website, it said the notice of intention to appoint insolvency practitioners was "part of a longer-term restructuring process initiated by the board some six months ago, to deal with a number of legacy issues".
"It is the intention of the board to continue to stabilise the company and ensure that this important part of the British aerospace sector can continue to trade successfully for the long term.
"For the avoidance of doubt, the NOIA applies only to Nasmyth Group Limited, an intermediate holding company. The wider group is not impacted, and its subsidiary trading companies will continue to trade as normal during this period, with the full support of all stakeholders.
"It is not envisaged that the process will affect any of Nasmyth's employees, and trade creditors to the operating companies will be paid as normal."
Begbies Traynor is handling the accelerated sale process, and is on standby to be appointed as administrator to Nasmyth.
Sky News has learnt that prospective buyers of Nasmyth Group, a Coventry-based company bought by Rcapital last year, have been asked to submit offers by the close of business on Wednesday.
The emergency sale process comes days after the High Court rejected a proposed restructuring plan that would have 'crammed down' creditors including HM Revenue & Customs (HMRC).
The taxman is owed nearly £3m by Nasmyth, according to court filings, and HMRC is understood to have decided to object after considering its position.
Nasmyth provides complex precision engineering services to a range of industries which also includes space and automotive.
It saw revenues badly impacted by the pandemic because of its extensive operations in the civil aerospace sector.
The company is now said to be generating annual sales roughly half of its historical peak of £85m.
In a statement on the Nasmyth website, it said the notice of intention to appoint insolvency practitioners was "part of a longer-term restructuring process initiated by the board some six months ago, to deal with a number of legacy issues".
"It is the intention of the board to continue to stabilise the company and ensure that this important part of the British aerospace sector can continue to trade successfully for the long term.
"For the avoidance of doubt, the NOIA applies only to Nasmyth Group Limited, an intermediate holding company. The wider group is not impacted, and its subsidiary trading companies will continue to trade as normal during this period, with the full support of all stakeholders.
"It is not envisaged that the process will affect any of Nasmyth's employees, and trade creditors to the operating companies will be paid as normal."
Begbies Traynor is handling the accelerated sale process, and is on standby to be appointed as administrator to Nasmyth.