Stuart Irwin and Richard Harrison from Interpath Advisory were appointed joint administrators to the contract electronic manufacturing services provider, Nitronica Limited, on 19 March.
Operating from a 53,000 sq ft facility based in Ballynahinch, Co. Down, Nitronica provides flexible contract electronic manufacturing (CEM) services to customers worldwide, including companies operating in the energy, aerospace, security, defence, medical and consumer electronics sectors.
The Company is part of the Pexion Group. Headquartered in Chorley, Lancashire, the Group specialises in the design, development and manufacture of high specification precision, subtractive, additive, fabricated and electronic components and sub-assemblies for high-tech industries including aerospace, automotive, medical and general industrial sectors. The Group consists of a parent company, Pexion Limited, and 14 trading subsidiaries, including Nitronica.
Over recent months, the Pexion Group had experienced challenging trading conditions and had started to come under increasing financial pressure from its suppliers. This in turn put pressure on the Group’s liquidity position. In response, the directors sought to undertake a review of the sale and restructuring options available to them, but when a solvent solution could not be found, they took steps to seek the appointment of administrators.
At the same time as the joint administrators’ appointment over Nitronica Limited, Richard Harrison and Howard Smith from Interpath Advisory were appointed joint administrators over 13 of the Group’s other operating subsidiaries.
Immediately following their appointment, the joint administrators completed a sale of Nitronica’s business and assets to Hinchtech Ltd. The transaction safeguards the jobs of 78 employees based at the Company’s site in Ballynahinch.
Stuart Irwin, joint administrator and managing director at Interpath Advisory, said: “With a heritage dating back over 70 years, Nitronica has played an important role in delivering contract electronic manufacturing services to some of the world’s leading manufacturers, as well as being a significant employer for the local community in Ballynahinch. We’re delighted to have secured this transaction which will ensure continuity of service at the Company’s facility in Co. Down, and which, importantly, preserves employment for its dedicated workforce.”
Separately, the joint administrators have also concluded five other transactions which safeguards the future of eleven of the Group’s other operating subsidiaries, preserving a further 352 jobs at sites across the UK.
Richard Harrison, joint administrator and managing director at Interpath Advisory, said: “We are delighted to have concluded these six transactions which not only will safeguard the future of thirteen of the Group’s operating subsidiaries, but importantly, safeguards a total of 430 jobs.”
“Pexion is a highly diversified group which supplies some of the world’s largest OEMs and tiered supply chain providers across key industries including the aerospace, defence, and automotive sectors. The complexity of the Group, coupled with the financial challenges it was facing, meant there was a requirement to complete five separate transactions to a very short timetable. As such, we are enormously grateful to the very many stakeholders who worked collaboratively with us to get these transactions over the line.”
