Ennstone's American directors spring a second surprise

The non-existent communications issues within Ennstone rumble on as the aggregates group’s American business seems to have taken on something of a semi-rogue status.

Only days ago the Americans sold off assets for cash without the main board knowing what they were up to.

The aggregates group is listed on the Stock Exchange as Ennstone plc and its American operation trades under the flag of Ennstone Inc.

A Stock Exchange statement by the board of Ennstone plc says that 25 February 2009 it was “informed by the directors of Ennstone Inc that Ennstone Inc had filed for protection from its creditors under Chapter 11.”

Chapter 11 is part of the American bankruptcy code. The result is that Ennstone Inc will now be managed by external supervisors.

Ennstone plc commented: “Neither the group's UK nor Polish businesses have any liabilities or any trading relationship with the US operations and they continue to operate as normal.”

The statement noted that the UK businesses, Ennstone Johnston and Ennstone Thistle, along with the Polish subsidiary, have “continued to perform satisfactorily in the difficult trading environment”.

These operations are “expected to have sufficient cash headroom through to the end of March 2009” on the basis of the on-going support of the UK and Polish lenders and finance lease providers.

Ennstone plc’s future  is still on the rack and “the group continues to work towards an agreed restructuring with its UK lenders within such timeframe which it is anticipated will secure the future of the UK and Polish trading companies.”