LONDON (Alliance News) - Redhall Group PLC on Tuesday said it intends to appoint administrators within 10 business days, unless "circumstances change".
On Friday last week, the engineering services company said it has been in active discussions with some of its major shareholders and creditors to provide additional funding capacity to allow the company to alleviate the short-term cash flow pressure.
The announcement came after a number of projects won by Redhall's subsidiaries Jordan Manufacturing and Booth Industries have been delayed, and a contract on an associated major nuclear infrastructure programme saw its value reduced amid design changes.
"The directors intend to allow the business to continue to trade and the company is working alongside advisers in order to preserve as much value as possible for all stakeholders as it explores the opportunity for the sale of all or parts of the business," Redhall said in its statement Tuesday.
Redhall on Friday requested its shares to be suspended from trading on London's AIM. Shares remain suspended, pending further notice.
