A Lincolnshire manufacturer has entered administration, prompting the search for a buyer 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.
Located in Coningsby, MTAG Composites is a manufacturer of moulded composite parts for various sectors such as rail, aerospace, automotive, construction, and leisure. The company produces items like train interiors, aircraft seating, and boats.
After considering viable options, the administrators decided to temporarily halt day-to-day operations immediately upon their appointment. Following a thorough financial review, the administrators opted to resume operations on a limited basis to align with the accelerated sales process.
The administrators have made minimal redundancies but retained all operational and production staff on a ‘lay-off’ basis. They are working with the Redundancy Payments Service (RPS) to ensure affected employees receive their statutory entitlements promptly.
Gareth Harris, restructuring advisory partner at RSM UK and joint administrator, stated, “The decision to restart operations highlights stakeholders’ commitment to saving the business and preserving staff livelihoods. Ongoing production, though not at full capacity, will aid in finding a buyer for the business.”
Deviesh Raikundalia, restructuring advisory director at RSM UK and joint administrator, added, “We have received significant interest in acquiring the business during the short time of the sales process. We are engaging with parties interested in acquiring all or part of the businesses.”
Employees retained since the appointment will continue to be paid, showing appreciation for their commitment and patience thus far.
