Sigmar boss seeking to buy out Newcourt interest

ADRIAN McGENNIS, boss of recruitment and training group Sigmar, is seeking to buy all or part of the business from its quoted parent, Newcourt.

Services group Newcourt also said yesterday its bank had warned it that it was in breach of its loan agreements.

In a statement, Newcourt said Mr McGennis has formally indicated that he wants to “explore the possibility of making an offer for some or all of” Sigmar.

“No discussions have yet taken place in relation to the possible terms of any such offer, nor has any formal proposal been received,” the statement added.

“A further announcement will be made at the appropriate time. Mr McGennis today resigned from the Newcourt board.”

The company recently said it was in talks with its bank to restructure its debts.

Yesterday, it confirmed that these talks are ongoing, and said its bank has “formally indicated that it considers Newcourt to be in breach of certain of its banking covenants”.

The statement said the company’s board was addressing the problem as a matter of urgency.

The company is not likely to publish 2008 accounts until it has dealt with its debt problems.

Newcourt has seen most of its value on the Irish stock market wiped out over the last year. The company’s shares were quoted at a high of €1.45 in 2007, but yesterday it closed at five cent, unchanged on its opening price.

Since late last year, various reports have indicated that management has been considering buying out the company. In December, it sold its student accommodation arm, Ely Property, to Philip Marley in a deal valued at €39 million.

Newcourt’s main businesses are Sigmar, which specialises in recruitment and aviation training, and security.

It owns Federal Security Services, which specialises in providing security staff and services to its clients.