K-Tig back in business, escapes administration

Rapid welding equipment manufacturer K-Tig is back in business having escaped administration through a downsizing and refinancing operation.

Administrators KordaMentha announced that creditors had approved a rescue package that will result in the company returning to normal operations recapitalised, and with a smaller cost base.

Under a Deed of Company Arrangement, K-Tig management has been returned to the directors, new capital will be raised and creditors will be repaid through a Creditors Trust.

Roughly half the company’s existing staff will remain with the company, with others paid their entitlements in full.

Administrator John Bumbak said: “The completion of the Deed of Company Arrangement made possible by the support of the companies (sic) directors together with the companies noteholders is a good outcome for the companies, their employees, creditors and shareholders.

“The companies are now restructured with a reduced cost base, reduced and restructured debt profile and material additional working capital.”

No reason has been given for the original decision to go into administration.

Further reading:
K-Tig goes into administration

Picture: K-Tig