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Portland concludes innovative administration disposal of global electronics manufacturing business

Portland has issued the six monthly progress report on the administration of ACW, a £35m t/o electronics manufacturer based in UK, China, US with over 500 employees worldwide.....

It encountered financial difficulties during 2012 with a global downturn in demand.  Working closely with management, the shareholder and other advisers (Blake Lapthorn, James Cowper Corporate Finance), Portland implemented an innovative disposal arrangement for the UK business to TT Electronics in a £8m deal that saw all secured creditors paid in full to respect their security and likewise all trade creditors paid in full to preserve the value of the supply chain (click here for full press release).

Portland committed with TT to a six month business transition for which we provided a £600k working capital facility (as the banks declined to remain involved).  During this period, we also worked closely with management for an orderly disposal of the remaining overseas business.  The remaining creditors, including substantial shareholder loans, should recover 20-30%.

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