Versarien moves step closer to insolvency

(Sharecast News) - Versarien moved a step closer to insolvency on Monday, after its board resolved to file a notice of intention to appoint administrators, prompting the suspension of trading in its shares on London's AIM market and the immediate resignation of its non-executive directors.

The advanced engineering materials group said it had continued to work with restructuring adviser Leonard Curtis while exploring options to sell its remaining assets.

Although potential buyers reportedly remained interested and creditors maintained support, the board concluded that it could no longer rely on that support to continue operating.

It had thus issued a notice of intention to appoint Leonard Curtis as administrator, triggering a 10-day protection period during which secured creditors can propose an alternative insolvency practitioner.

Versarien said Leonard Curtis would use the window to attempt to complete a transaction with interested parties, adding that a deal could still avert a formal administration.

If no agreement was reached within the timeframe, administration proceedings would begin.

As a result of the filing, trading in Versarien's ordinary shares was suspended from 0730 GMT on Monday.

The company also confirmed that non-executive directors Sir Iain Gray, Diane Savory and Susan Bowen had resigned with immediate effect.

Versarien said it would provide further updates "in due course".

Reporting by Josh White for Sharecast.com.