UK cable manufacturer saved by business recovery specialists

Phil Black - PII Editor 04/03/2014

210 1 minute read

Listen to this article

The future of one of the oldest cable manufacturers AEI Cables Limited and its 200 staff has been secured following a Pre Pack sale handled by business recovery specialists, Springfields Business Recovery & Insolvency. The acquisition has been made by the Middle Eastern cable manufacturing group Ducab which operates from five manufacturing facilities in the United Arab Emirates.

AEI Cables has its manufacturing base in Birtley, County Durham and has been a respected name in the industry for many years. The business can trace it roots back to 1929 when it was know as Associated Electrical Industries. In recent times it has specialised in high performance cable manufacture and its products are used in various sectors including Aerospace and Rail Transportation.

Despite their success in the industry, the company encountered cash flow difficulties in 2011 and entered into a Company Voluntary Arrangement with its creditors. The company undertook a restructuring of the business, which at the time resulted in a number of redundancies. Following approval of the CVA, the company began to move away from the house wiring market to more specialist markets.

The Administrators were appointed late on 28 February 2014 and the sale was completed shortly thereafter. Deviesh Raikundalia, Joint Administrator said “The sale of the AEI business has ensured continuity for the company’s wide customer base and preserved the employment of the existing workforce. The sale secures the future of a well-known and established brand and ensures the continued manufacturing business for the local area.”

Springfields were assisted in undertaking the transaction by Leicester based law firm Spearing Waite and specialist agents Edward Symmons.