LONDON: Haydale (AIM: HAYD), an advanced materials group, announced that it has filed for insolvency for its wholly owned subsidiary, Haydale Ceramic Technologies LLC (HCT), in the state of Georgia. This action is part of the Group’s restructuring efforts following a business review concluded on December 23, 2024.
The Group plans to sell HCT’s assets through a public auction under a court-supervised process, aiming to maximize value and potentially return cash to Haydale, which holds a £12.8 million intercompany debtor balance with HCT. Several third-party companies have shown interest in participating in the auction.
During the Chapter 11 subchapter V process, HCT will continue its operations and retain control of its assets. The company expects to remain in Chapter 11 for up to 90 days, with sufficient working capital to fund its activities.
HCT operates a Silicon Carbide and cutting tool manufacturing facility in Greer, South Carolina, serving markets in North America, Europe, and East Asia. Despite strategic efforts to enhance its U.S. operations, Haydale’s U.S. business has not achieved the anticipated growth, leading the reconstituted Board to conclude that divestment is in the company’s best interest.
The Group expects significant cost savings in FY25 through the elimination of ongoing operating losses and overheads in the U.S. business. The remaining intergroup balances and investments not already accounted for will be addressed in the interim accounts to December 31, 2024.
Following the divestment of its U.S. operations and the sale of its South Korean subsidiary, Haydale will focus on its UK-based nanomaterials business, integrating graphene and other nanomaterials into industrial materials and technologies.
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