Haydale concludes US subsidiary auction with no returns to UK

Published 17/04/2025, 10:50
Haydale concludes US subsidiary auction with no returns to UK

AMMANFORD - Haydale Graphene Industries PLC (AIM:HAYD), a company specializing in advanced materials, has confirmed the conclusion of the court-approved auction of its US subsidiary, Haydale Ceramic Technologies LLC (HCT), which had entered a corporate insolvency process. The auction ended with Greenleaf Corporation presenting the highest bid of approximately $680,000. However, the sale’s proceeds will not provide any cash return to Haydale’s UK operations due to the intercompany debtor balance.

The insolvency process, which began on February 10, 2025, aimed to prevent further cash outflows from Haydale to HCT and to sell the subsidiary’s assets in an orderly manner that would benefit Haydale’s shareholders. Despite initial interest from potential buyers, the auction faced challenges due to increasing geopolitical tensions and trade uncertainties, particularly between the US and China, impacting the investment climate and HCT’s supply chain.

The transaction with Greenleaf Corporation is expected to be finalized by the end of April, with the subsequent liquidation of HCT. This move aligns with Haydale’s strategy to reduce overhead costs and simplify operations, contributing to the company’s goal of improving profitability and cash flow for the fiscal year 2025.

Haydale’s Chief Executive Officer, Simon Turek, has not commented on the specifics of the auction outcome. The company’s focus remains on protecting its core business and achieving its financial objectives. This development comes as part of Haydale’s broader efforts to restructure its operations and navigate the challenging economic landscape.

This report is based on a press release statement issued by Haydale Graphene Industries PLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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