Crisis firm Clean Air Power sold for £250,000
TROUBLED Lancashire company Clean Air Power has been sold for £250,000 as a going concern.
CAP, a specialist in the development of compression-ignited natural gas systems and software for heavy duty vehicles, has been sold to Hardstaff Dual Fuel Technology Ltd, a subsidiary of Vayon Holdings.
The company, based in Leyland, filed a petition with the Supreme Court of Bermuda on September 2 for the appointment of joint provisional liquidators and Michael Morrison and Charles Thresh of KPMG were installed in that capacity.
The sale is subject to a court order from the Supreme Court sanctioning the approval of the joint liquidators clearing the way for the sale to complete late yesterday.
CAP chairman Rodney Westhead said: “The fall in oil prices globally has had a drastic impact on sales in the US and Russia.
“This significant challenge to the business was compounded by our customer on the South East Asian programme deciding in June this year to extend testing rather than to proceed directly to the full production program as anticipated.
“These circumstances created significant pressure on the group’s cash flows. The board, supported by KPMG, has conducted an exhaustive strategic review, exploring a range of refinancing and restructuring options to maximise the value of the group, but the response from potential investors and buyers was disappointing.
“The group could not continue without financial support and, therefore, the board is satisfied that this was the best course of action.”
The writing was on the wall for £6.8m turnover CAP several weeks ago when it applied for the suspension of trading in its shares on AIM followed by the departure of two directors as it looked for a buyer.
