Lamont Holdings, the Northern Ireland textiles group, has announced the completion of phase one of its restructuring plan.

It has refinanced a number of property assets which is non-recourse to Lamont and this concludes its withdrawal from its carpet and carpet yarns division. The £6 million sterling (€6.4 million) proceeds from the asset sale, to a company controlled by Lamont, will be used to reduce bank indebtedness.

"In order to maximise the proceeds from this disposal process," Lamont said it had entered into an agreement with parties which are experienced in property management and development. When certain disposals are completed, Lamont will pay a management fee to the property developers "after meeting interest and other costs and the repayment of associated bank debt".

After that the group had "the prospect of participating in any further proceeds", the statement said.

This latest deal, together with the recently announced disposal of the Killinchy business and assets to McCleery Yarn (an MBO) for some £1.1 million, the Hollybank disposal announced in April, and the disposal of plant and machinery from the other carpets and yarns businesses, will reduce group bank indebtedness by some £9 million, Lamont said.

The group's plan is to turn itself into an investment holding company and reduce its exposure to the British textiles industry which is suffering from financial traumas due to over capacity, strong sterling and competition from cheaper imports.