TIDMMRX 
 
RNS Number : 9442U 
Metalrax Group PLC 
02 July 2009 
 
2nd July 2009 
 
 
 
 
 
 
 
 
Metalrax Group PLC ("Metalrax") 
 
 
Hidrosib S.A. ("Hidrosib") and Refinancing Update 
 
 
 
 
Hidrosib 
 
 
Metalrax, the niche supplier of specialist engineering and consumer durable 
products, announces that its Romanian subsidiary, Hidrosib, will today apply to 
the Romanian courts to commence insolvency proceedings, so as to stem losses 
running at approximately GBP100,000 per month. 
 
 
Hidrosib, which is based in Sibiu, Transylvania, manufactures hydraulic 
equipment. In addition to an onerously high cost base imposed as part of its 
privatisation in 2004, it has been seriously impacted by the current economic 
conditions. 
 
 
In the year ended 31 December 2008, Hidrosib incurred a loss before taxation of 
c. GBP0.3m on turnover of GBP1.0m. At that date it had net assets of 
GBP7.1m (including land and buildings stated at its fair value at the time of 
the acquisition). The level of realisation of these assets is uncertain and, 
under Romanian insolvency proceedings, may take up to two years. As a result, 
the Directors of Metalrax expect to provide in full in the current year against 
the full value of its net assets. 
 
 
 
 
Refinancing update 
 
 
Metalrax also announces that progress is being made regarding the refinancing of 
its bank debt. Outline funding proposals have been received from the company's 
banks, HSBC and The Royal Bank of Scotland, which are being considered by the 
company. 
 
 
Andrew Richardson, Chief Executive of Metalrax, commented: 
 
 
"Whilst commencing insolvency proceedings with Hidrosib is regrettable, it will 
generate significant benefits for the Group. We will cease to bear its losses, 
we will stop the cash drain associated with it, and, importantly, it will enable 
management to focus further on the Group's core activities. 
 
 
"In addition, I am pleased to report that we have made real progress with our 
proposed refinancing. The banks' proposals are subject to negotiation and final 
agreement between the parties involved and any eventual terms will require the 
agreement of the pension trustees and The Pensions Regulator. Metalrax is in 
active discussions with these parties and a further announcement will be made in 
due course." 
 
 
 
 
 
 
For further information: 
 
 
+------------------------------------+-----------------------------------+ 
| Metalrax Group PLC                 |                                   | 
+------------------------------------+-----------------------------------+ 
| Andrew Richardson, Chief Executive | 0121 433 3444                     | 
+------------------------------------+-----------------------------------+ 
|                                    |                                   | 
+------------------------------------+-----------------------------------+ 
| Arden Partners                     |                                   | 
+------------------------------------+-----------------------------------+ 
| Chris Fielding                     | 020 7398 1600                     | 
+------------------------------------+-----------------------------------+ 
| Steve Douglas                      | 0121 423 8900                     | 
+------------------------------------+-----------------------------------+ 
|                                    |                                   | 
+------------------------------------+-----------------------------------+ 
| Hogarth Partnership                | 020 7357 9477                     | 
+------------------------------------+-----------------------------------+ 
| Andrew Jaques                      |                                   | 
+------------------------------------+-----------------------------------+ 
| Rachel Hirst                       |                                   | 
+------------------------------------+-----------------------------------+ 
| Anthony Arthur                     |                                   | 
+------------------------------------+-----------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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