High Court action launched against home safety product developer
FireAngel is facing High Court action over alleged defective home safety products manufactured between 2011 and 2019.
Zenner International and Minol Messtechnick W. Lehmann have launched legal proceedings against a subsidiary of the Coventry firm, with a claim worth up to almost €7.26m. The alternative claim is for FireAngel to repair or replace the units under an alleged warranty.
FireAngel says that after taking legal advice, it believes “the claim is without merit and will robustly defend the proceedings”.
Both Zenner International and Minol Messtechnick W. Lehmann have been contacted for comment, with no reply received.
A £27.68m takeover offer was been received for FireAngel last October from Intelligent Safety Electronics (ISE), incorporated in Singapore and owned by Siterwell Electronics.
Manufacturer of security protection ISE already holds 17.46% of FireAngel and now looks to purchase the remaining shares for 7.40p a share.
The deal’s completion date was extended at the start of March as the firm awaits state clearance. The Secretary of State now has 45 working days to decide to clear the transaction through a final notification or apply remedies through a final order.
FireAngel admitted in September that it faced a “material uncertainty” after exiting a contract and said it may need to revisit its banking covenants, which were waived and then reset earlier this year. Chairman Andrew Blazye and chief executive Neil Radley joined in June after a £6m fundraising was completed to lead a recovery, with the aim of reducing its net debt to £2.8m.
