Could it be the end of the line for shareholders in AEA Technology?
The company, an environmental consultancy spun out of the Atomic Energy Authority in 1994 and floated in 1996, has been struggling with poor trading as well as debt of £34m and pension liabilities of £165.5m.
It has been in talks with its banks and pension trustees, both of whom have apparently been supportive. But despite coming up with a new strategy and business plan, it has not been able to agree a long term solution to its debt and pension problems.
So, with short term financial support from its bank, it has decided to consider "all strategic options to realise value." And here comes the bad news for shareholders:
The board does not envisage there will be offers for the share capital of the company, and the board expects that such options will result in little or no value for shareholders.
The share price reaction was predictable - down 77% to just 0.05p, valuing the business at just £730,000.
