London black cab maker, Manganese Bronze, has filed an intention to appoint administrators.
In a filing dated today the firm announced: “that discussions with various parties to secure funding on acceptable terms to address the Group’s financial needs have proved unsuccessful. The Board has therefore concluded that the Group is no longer a going concern and has filed notice of intention to appoint administrators.”
The difficulties mostly stem from a production problem that resulted in a fault with the steering column of the car. This has meant that as many as 400 cabs had to be recalled. The firm had been hoping for an injection of £15m from the Chinese car-maker Geely, which would have transferred production to China. For the first six months of 2012 the firm recorded an operating loss of £3.1m on revenues of £34.3m. In August it revealed it had understated past losses by £4.25m.
However the filing does state that they think the business has a viable future. This is at some odds with the company's opening statement.
So what has happened?
It is possible it faced a winding up petition that would have meant that the company would have been unable to trade. However more likely it is viable if someone would inject £15m into it! The failure of that money coming forward put it into an impossible position.