Partner Article

Sylatech saves Yorkshire castings firm in pre-pack

Newcastle-based Sylatech Ltd has bought Kirkbymoorside’s Micro Metalsmiths out of administration in a pre-pack deal.

The move has saved 111 jobs at the family-run firm which supplies to the defence, aerospace and medical sectors, among others.

Hunter Kelly and Charles King of EY’s Restructuring team in Yorkshire were appointed joint administrators of Micro-Metalsmiths Limited (‘the Company’) on May 2.

The Administrators sold Micro Metalsmiths, and the entire share capital of MM Microwave Limited, which was owned by Micro-Metalsmiths, to Sylatech – securing the future of MM Microwave’s 30-strong workforce and Micro Metalsmiths’ 81-strong workforce.

Hunter Kelly, joint administrator and Restructuring Partner at EY, said: “Due to the combined effect of challenging trading conditions and a large pension scheme deficit, Micro-Metalsmiths’ was effectively running out of cash.

“As result, the directors commenced a marketing process to identify potential buyers for the business.

“Shortly after the period of marketing, the Company became unable to meet its debts and, as a result, entered administration.

“We were able to secure a going concern sale to Sylatech which has safeguarded the future of all 111 employees across Micro-Metalsmiths and MM Microwave.

“A going concern sale represents a better outcome for Micro-Metalsmiths’ creditors than the alternative, which would have been immediate closure.”

This was posted in Bdaily's Members' News section by Tom Keighley .