News blog
Catalytic Solutions Inc
- BY: Andrew Hore |
- POSTED: 01/10/2009 |
Catalysts and emission control systems developer is Catalytic Solutions Inc has sold the main assets and liabilities of Applied Utility Systems to Johnson Matthey for $10m.
JM has paid $8.5m with $500,000 dependent on new contracts and the other $1m for warranty purposes. There will be a settlement for net working capital.
AUS develops gas turbines, boilers and process heater emission control systems. Catalytic acquired the business for $6.25m in August 2006. However, the business lost $915,000 in 2008.
Catalytic will use $6.8m of the cash to pay off debt. The company still needs to raise more money from a share issue or from the sale of more assets. The remaining secured lender is Fifth Third Bank and it is extending forbearance on the $6.6m loan outstanding until 30 November 2009.
Management admits that the immediate outlook for the company is uncertain because it needs to repay this loan but at least it has more time.
The Regulation S shares were suspended at 4p a share on 30 September 2009. The other class of shares was suspended at 2.25p a share. The combined market value of the two types of share is £1.86m.
There was a small increase in first half revenues from the $26.8m reported in the first half of 2008 – of which AUS contributed $1.3m. However, the continuing catalyst and heavy-duty diesel systems businesses declined in the first half of 2009 and AUS more than made up for the shortfall in revenues.
Management has reduced costs and there are signs that the remaining businesses should stabilise in the second half of 2009.
© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|