Dyson continues restructuring with overseas sale
MATERIALS technology group Dyson, which has proposed to delist its shares from the stock market, has announced the sale of one of its subsidiaries in the United States and the closure of another in China.
Dyson revealed that negotiations with its banks to restructure the business and for them to take a majority stake in the company had been agreed in principle last week.
The Sheffield-based company today announced its subsidiary Millennium Materials Inc (MMI), based in Knoxville, Tennessee, had exchanged contracts with Millennitek LLC and completed the sale of its B4C pellet production business for a nominal sum of US$10.
B4C provides services, equipment and advanced materials to nuclear and industrial customers.
Millennitek LLC is a company that has been established and is controlled in part by the existing management of the B4C business.
The B4C business made a profit of $630,000 in the six months to September 30, 2008, which are the most recent publsihed.
The unaudited management accounts for the nine months to December 31, 2009 show a loss of $302,000 and gross assets of $722,000.
Following the transaction all 14 employees with MMI will have their positions terminated but it is expected Millennitek will immediately recruit 12 of the same employees.
Dyson has also decidied to cease production of artificial coals and logs used in domestic gas fires at its Dyson Ceramic Products (Tianjin) Co subsidiary, based in Tianjin China.
An application is to be made to apply to liquidate the company which it is anticipated will be done on a solvent basis.
Dyson, which has had its shares suspended since July 31 last year because it has not been able to publish its accounts for the year to March 31, is planning a debt and capital restructuring.
The company’s directors said that they have reached an agreement in principle with its banks which involves the conversion to equity of a significant proportion of the group’s existing bank borrowings and the provision of new secured debt facilities.
The group has been selling off some of its subsidiary businesses and property interests in recent months and last month sold its precision ceramics division, based in Dewsbury, West Yorkshire, to JEMMTEC to its management for £100,000.
