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23 Jul 2019 | 14:12

Modern Water to put membrane unit in administration; seeks funding to stay afloat

Water treatment and quality monitoring company Modern Water said it was planning to appoint administrators to its membrane division.

The division comprised two subsidiaries, Modern Water and Services Surrey Aquatechnology, which would both be placed in administration after an interim moratorium period.

Modern Water said the company itself and none of its other group companies, including its US-based monitoring division, were affected by the decision and continued to trade normally.

However, it also said that it would need to secure additional funding in the short term to continue to operate.

The interim moratorium for the two subsidiaries would last 10 business days, to allow them some temporary protection from creditors and legal claims.

Modern Water said its notice of intention did not denote the appointment of administrators just yet, and that it may decide not to appoint the administrators if the situation could be resolved.

'As previously announced, the company is continuing to manage its working capital carefully with the business being funded using extended credit lines alongside increased efforts to convert debtors to cash,' Modern Water said.

'Whilst this may be sustainable in the short term, it is important that additional funding is secured in the near term in order to provide a sustainable basis on which to continue to operate the group.'

'The company continues to explore options to raise additional capital.'

At 2:12pm: (LON:MWG) Modern Water PLC share price was -0.05p at 1.75p

Story provided by StockMarketWire.com
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