Tanfield Confirms Progress toward Snorkel Sale

Sept. 13, 2013

Tanfield Group, a manufacturer of aerial work platforms, last week reported it is working together with the preferred potential purchaser of its Snorkel division in making significant progress in its due diligence and the completion of a suitable contract.

As previously announced, the company is currently being managed to conserve cash through the sales process. In order to bolster the company's cash position and to provide working capital headroom through the period Tanfield has secured a debt facility of £500,000 (about U.S. $790,705) from two of its directors. The loan is secured and has a fixed interest rate of 9.5 percent and is repayable on the earlier of completion of the sale of the powered access division or Dec. 20.

“The company may need to raise further funds from exchange of contract to completion,” the company said in a statement. “The board will seek alternatives sources of funds, however, these directors have indicated they would be prepared to extend further funds if necessary.”

Tanfield said further updates will be issued in due course.