Buyer found for aero parts manufacturer
ADMINISTRATORS handling the aerospace parts manufacturer, North West Precision Forms, expect to conclude a sale of the business by the end of the week.
The Wirral firm, which makes parts for Airbus, the Eurofighter and private jets, failed in June after struggling with diminishing margins and losing a contract worth £1.7m.
But the business, owned by Miles Tudor, Justin Tudor and Michelle Davies, is being run as a going concern by administrators at KPMG and attracted interest from 32 parties which led to five offers, according to a creditors’ report filed at Companies House.
During the past month two of the five potential bidders have been carrying out due diligence at the company and been in talks with its major client, the European aircraft manufacturer Airbus. KPMG said it expects to announce the buyer later in the week.
North West Precision Forms has a turnover of £7m and 87 staff. It was established in 1972 and earns 85% of its income from trade with Airbus which committed £500,000 to support the trading costs of the company during the search for a buyer.
The business collapsed owing Royal Bank of Scotland Invoice Finance £1.8m and a further £470,000 to RBS. It also owed the mortgage lender Commercial First £220,000 and £170,000 to the Merseyside Special Investment Fund, which supported the business in 2007 and 2008.
Unsecured trade creditors, owed £1.1m, are not expected to receive anything. HM Revenue & Customs is owed £177,319 while the company directors are owed £116,785.
