Interpath Advisory secures six rescue deals for Pexion Group

Interpath Advisory has secured six rescue deals for Pexion Group, preserving 430 jobs, after Richard Harrison and Howard Smith were appointed joint administrators to fourteen companies across the business. Pexion Group specialises in the design, development and manufacture of high specification precision, subtractive, additive, fabricated and electronic components and sub-assemblies for high-tech industries. The group consists of a parent company, Pexion Limited, and 14 trading subsidiaries. Over recent months, it experienced challenging trading conditions and came under increasing financial pressure from its suppliers. In light of this, the directors sought to undertake a review of the sale and restructuring options available to them, but when a solvent solution could not be found, they appointed Interpath. Immediately following their appointment, the joint administrators completed six separate transactions which safeguards the future thirteen of the group’s operating subsidiaries, and preserves 430 jobs at sites across the country. These include: The sales of Pexion Limited, Rictor Engineering Limited, Alan Gordon Engineering Limited, Paragon Precision Limited, SKN Electronics Limited, HT Tooling Solutions Limited, Elite Tooling Solutions Limited and Oxton Engineering Limited to a company owned by Baaj Capital LLP. A total of 144 people have transferred to the purchaser as part of the transaction. The sales of Nitronica Limited to Hinchtech Limited and Simtek EMS Limited to Westwood EMS Limited. A total of 174 have transferred to the purchasers. The sales of Claro Precision Engineering Ltd and Drurys Engineering Ltd to Amcomri Group Limited, with 76 members of staff transferring to the purchaser. The sale of Precision Engineering Pieces Ltd to Geometric Manufacturing Ltd, with 38 members of staff transferring. The sale of Clitheroe Light Engineering Ltd to Bryden Venture Engineering Ltd with a total of 25 employees transferring as part of the transaction. Phasa Limited was not included as part of these transactions, however, and as a result, Interpath said the business will be wound down, with the loss of four jobs. In addition, 13 people employed by the parent company Pexion Limited were made redundant. Interpath said it will provide support to those impacted by redundancy, including supporting them with claims to the Redundancy Payments Service. Richard Harrison, joint administrator and managing director at Interpath Advisory, said: “We are delighted to have concluded these six transactions which not only will safeguard the future of thirteen of the group’s operating subsidiaries, but importantly, safeguards 430 jobs. “Pexion is a highly diversified group which supplies some of the world’s largest OEMs and tiered supply chain providers across key industries including the aerospace, defence and automotive sectors. The complexity of the group, coupled with the financial challenges it was facing, meant there was a requirement to complete six separate transactions to a very short timetable. As such, we are enormously grateful to the very many stakeholders who worked collaboratively with us to get these transactions over the line.”