Sigmar management may make offer to receiver

THE MANAGEMENT of recruitment company Sigmar could be set this week to make an offer for the business to the receiver of its troubled parent, Newcourt.

Bank of Ireland appointed David Carson, a partner with Deloitte, as receiver to Newcourt at the company’s own request last week.

Adrian McGennis, chief executive of Newcourt subsidiary Sigmar, recently indicated to the parent company’s board that he was interested in buying out the recruitment business. It is understood that Mr McGennis met Mr Carson at the weekend, and he is hopeful that he can make an offer quickly, possibly as soon as this week.

Sigmar specialises in recruitment and has an aviation arm focused on recruiting and training pilots. The company is reported to be trading well, despite the recession.

Along with this business, Newcourt also has a security division, which provides services mainly to commercial and industrial customers.

Newcourt had about €36 million in debt at the end of last year. The company recently revealed that it was in breach of its banking covenants, and was in talks with its bankers in an effort to restructure its debts.

Last week, the company said this process had failed. It asked Bank of Ireland to appoint a receiver and had its shares suspended from trading on the Dublin and London stock markets.

Bank of Ireland subsequently appointed Mr Carson as receiver.

In a statement on Friday, the Deloitte partner said his first priority would be to establish what possibilities existed to sell shares in its subsidiaries.

He added that the companies’ operations and contracts would not be immediately affected by the process.

Mr Carson is head of Deloitte’s reorganisation services division and has acted on a number of high-profile receiverships, including Waterford Wedgwood, most of whose businesses were sold earlier this year to US equity fund KPS Capital.

He also acted as examiner to retail chain Sasha.