Suitors emerge for troubled Clean Air Power
TROUBLED commercial engine technology developer Clean Air Power says “a number of parties” are interested in buying some parts or all of the business.
The Leyland-based group, which said in June ordered a strategic review amid short-term funding issues, said it is working with its adviser, KPMG, to evaluate all potential suitors.
Clean Air Power, which develops and builds compression-ignited natural gas systems and software for heavy duty vehicles, has had a torrid few months and has been beset by a raft of project and regulatory delays which have dented its revenues and impaired progress.
Despite the potentially positive news regarding a rescue deal, the group’s chief executive John Pettitt warned that the company’s financial position could impact the board’s ability to maximise value for investors.
The company said: “In response to KPMG’s work to secure the long term financial stability of the group, a number of parties have expressed an interest in acquiring all or a part of the goup.
“Such interest may or may not lead to an offer being made for all or a part of the group. The board, as advised by KPMG, are in the process of evaluating these expressions of interest as a way to provide long term financial stability and maximise the value of the group within the constraints of the group’s current financial position.”
Pettitt added: “As we explained in our announcement on 23rd June, the decision by our partner on the South East Asian MicroPilot program to extend the first phase rather than proceed to the second and full production phase, as we had expected, has put pressure on the group’s short term cash flows; a position which has been exacerbated by falling oil prices impacting sales of our Genesis-EDGE products in the US and Russia.
“KPMG have been extensive in their work to secure the long term financial stability of the group and we will continue to work with KPMG over the next few weeks to deliver the best solution for all stakeholders, recognising that the group’s short term financial position may act as a constraint on our ability to maximise the value of the group.”
