Liberty Aluminium Technologies Seeks Time to Find Buyer
The Guardian reported that Liberty Aluminium Technologies that faces the threat of administration has asked its bankers to give it time to try to negotiate with four potential buyers. It is understood that Liberty Aluminium Technologies, a supplier of cast parts to Jaguar Land Rover, could be forced into administration within days if its main bank Close Brothers does not agree to give it more time. A GFG spokesperson said that it is hoping to carry out an accelerated sales process with the four possible buyers if talks with Close Brothers and its adviser, the restructuring consultancy Interpath, were successful.
GFG Alliance spokesperson added “Over the last month the restructuring and transformation committee has been exploring strategic options regarding the future of Liberty Aluminium Technologies Ltd. The RTC is in discussions with four interested parties with a view to achieving an accelerated sale process and is also in discussions with LAT’s main creditor to give it the time to conclude that process effectively.”
Liberty Aluminium Technologies had revenues of GBP 68 million in the year to the end of March 2020 and made profits of GBP 7.5 million. However, it warned that results for the last year would be adversely impacted due to the uncertainties regarding Covid-19 and the automotive sector. Jaguar Land Rover has been forced to shut its factories temporarily at various points because of the pandemic.
Close Brothers has appointed Interpath Advisory, the former restructuring arm of KPMG to advise it on options for its exposure to Liberty Aluminium Technologies.