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