A County Durham-based cable manufacturer has been sold out of administration via a pre-pack deal.
AEI Cables Limited experienced cash flow problems in 2011 and as a result entered into a Company Voluntary Arrangement (CVA) with its creditors.
Deviesh Raikundalia and Situl Raithatha of Springfields Business Recovery & Insolvency were appointed as joint administrators of the company on 28 February.
A pre-pack sale of AEI was affected the same day to Middle East cable manufacturing group Ducab, which operates from five manufacturing facilities in the United Arab Emirates.
Following cash flow problems, AEI undertook a restructuring of the business, which at the time resulted in a number of redundancies.
After gaining approval of the CVA, the company began to move away from the house wiring market to more specialist markets.
Raikundalia, joint administrator and director at Springfields, 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.”