Versarien PLC Faces Administration Amid Financial Woes

Advanced engineering materials group Versarien PLC has regrettably filed a notice of intention to appoint administrators, signalling significant financial difficulties. This move follows a warning last week that administration was a possibility after a potential UK quoted public company withdrew its interest in the struggling firm.

Key Takeaways

Versarien PLC has filed a notice of intention to appoint administrators.
The company cited financial concerns and withdrawal of interest from a potential acquirer.
Trading of its shares on AIM has been suspended.
Non-executive directors have resigned.

Financial Distress and Administration Notice

Versarien PLC, headquartered in Gloucestershire, has resolved to serve a notice of intention to appoint Leonard Curtis as administrators. This decision comes after the company warned last week that it might be forced into administration. The primary reason cited for this drastic step is the withdrawal of interest from a UK quoted public company that had been considering acquiring the business.

While the company’s board acknowledges that interest in acquiring its assets continues, it is heavily reliant on the support of its creditors to maintain operations. The notice of intention to appoint administrators (NOIA) serves as a temporary measure to shield the company from creditor enforcement actions for a period of ten working days. This timeframe also allows secured creditors the option to appoint an alternative administrator.

Seeking a Transaction Amidst Uncertainty

During the protection period afforded by the NOIA, Leonard Curtis will work to finalise a transaction with interested parties. The company has stressed that such a transaction may not necessarily lead to a full administration. However, if a deal cannot be concluded within the specified timeframe, the administration process will proceed.

The trading of Versarien’s ordinary shares on the AIM market has been suspended. In a related development, the non-executive directors of the company, Sir Iain Gray CBE, Diane Savory OBE, and Susan Bowen, have resigned from their positions with immediate effect.