Jobs go at Cheshire engineering firms
NEARLY all jobs have been lost at two Cheshire engineering businesses after problems with a key overseas contract forced them into insolvency.
CAL Process and its sister company CAL Systems, based at Stanney Mill Industrial Park, Little Stanney near Ellesmere Port, appointed administrators earlier this month amid a cash flow crisis.
Joint adminstrators Ian Brown and John Fisher from the Liverpool office of Parkin S Booth and Co, said they were doing all they could to maximise the returns for creditors.
They said the majority of the 30 staff employed by both businesses had been made redundant ahead of their appointment on September 16.
Both companies provided Turnkey Process Control projects to a wide range of industries and clients, with CAL Process providing logistical support to US clients.
The administrators said: “One large US contract, requiring the delivery of five separate bespoke systems faced unforeseen difficulties and time over-runs meaning the project schedule was revised.
“Due to the revised schedule, full payment for the contract has not been received leading to a large deficit in the cash flows of both companies. Despite the best efforts and hard work of the staff and management, the company has insufficient liquid assets to fund continued trade and as a result has entered administration.”
They added: “Key management remain involved in ensuring maximum value can be extracted from work completed to date by ensuring all paperwork and system information is up to date.”
