PRESS RELEASE

Tailored funding package from State Securities lifts engineering company out of administration

Key points :

• Engineering company in administration proving difficult to sell as a going concern before State Securities stepped in
• Intricate deal, as bespoke assets which were difficult to value, property wasn’t owned, no deposit available and a legally complex transaction

 Monday, 23 April 2007: Asset funder, State Securities, has provided essential financial support for the purchase of a UK engineering company who were put into administration after its US parent company were forced into administration. The company, who were experts in producing metal pressings and castings, was to be sold as a going concern.

The purchaser needed to raise circa £500k. The finance deal was particularly complex as the asset was die cast plant with limited value; the commercial property wasn’t owned; there was no deposit available and there were other legal complications.

Unlike some financiers, State Securities are adept at finding innovative solutions and going the extra mile to provide tailored funding packages despite challenging circumstances.

Senior Sales Manager at State Securities, Terry Hounsome, commented, “We could see the business had potential and we were keen to provide a solution. Although the deal was particularly complex and several approaches were tried, we came up with a workable asset based solution which incorporated £521k being repaid over 60 months and State Securities taking a shareholding with appropriate associated warranties and agreed exit routes for all parties. To the customer’s satisfaction, he was able to buy the business with no cash outlay – and with a 3 month payment holiday”.

State Securities is able to provide fast, flexible finance solutions, incorporating asset finance and refinance, commercial mortgages, factoring and the Small Firms Loan Guarantee to UK businesses. Its proficiency lies in finding practical funding solutions for customers where other lenders may not have the means or facilities to do so, whatever the business circumstances.

Contact : Terry Hounsome, State Securities, tel 01489 775635 or visit www.statesecurities.co.uk

-Ends-

Notes to Editors :

State Securities

State Securities has over 26 years experience assisting business customers who are looking to raise finance for the acquisition of new or used assets, along with the re-financing of assets already owned by the business. It also provides commercial mortgages for properties including factories, warehouses, offices and retail outlets and factoring for State Securities type customers to help improve their cash management and to assist in trying to provide a complete finance package.

State Securities supports a wide range of clients, including public and private limited companies, partnerships and sole traders, and can also help companies that have difficulty in raising finance in a short period of time, for example new start businesses. Additionally, it specialises in assisting businesses in company or individual voluntary arrangements.

Registered Head Office : State Securities plc, Burlington House, Botleigh Grange Office Campus, Grange Drive, Hedge End, Southampton, Hants SO30 2AF, t 01489 775600.

Visit www.statesecurities.co.uk