AssetCo gains two week reprieve to continue bid talks

TROUBLED fire engine supplier AssetCo won a two-week reprieve from its creditors to pursue its last-ditch sale talks yesterday.

AssetCo told a court hearing to discuss a creditors petition brought by a number of its suppliers that bid talks had progressed. The court adjourned the hearing until Saturday 25 July.

Bahraini bank Arcapita is in exclusive talks for AssetCo after other bidders including US group Seacor and Italian group InvestIndustrial pulled out.

But AssetCo said despite the current discussions there was still no certainty that an offer would be made.

Arcapita has made repeated attempts to buy AssetCo over recent months but the offer value has fallen from 80p to 2p per share as AssetCo’s debts have increased and it has failed to refinance a long-term debt facility.

Its debts are now estimated at between £117m and £140m and it is being pursued by creditors including parts supplier Supply 999; Halifax Bank of Scotland and the Inland Revenue.