Feeds

Plasmon UK goes into administration

Redundancies en route to a takeover

High performance access to file storage

Plasmon has placed its UK and Europe operation in administration as it negotiates with an investor who it hopes will refinance and take over its core archive business.

Plasmon has said that staff from Kroll's Corporate Advisory and Restructuring Group were appointed as Joint Administrators on Monday, 6 October.

There are, in effect, two parts of Plasmon: Plasmon Inc, the US operation, which a subsidiary of Plasmon Ltd, the original UK operation. There are several business units involved in Plasmon Ltd., for example in CD and DVD mastering in France, and in UDO media research in Cambridge.

A person familiar with the situation said that about a third of Plasmon Ltd's staff were made redundant. The software and UDO media teams have been hardest hit. They were judged unimportant compared to the core archive business, and are being closed down during ongoing negotiations with the (presumably) US firm interested in taking over the parts of Plasmon it wants.

Plasmon's statement said the Administrators: "are continuing to trade the Company's UK and European sales and marketing division alongside the continuing operation of the Company's US subsidiary, Plasmon Inc. This enables the ongoing sale and support of Plasmon products worldwide whilst a going concern sale of the business is explored. The Administrators are presently in discussions with a number of interested parties and are hopeful that a sale of the remaining business can be achieved in a relatively short time frame."

This sounds like the Administrators are in control but, in essence, its Plasmon CEO Steve Murphy's team who are doing the negotiations with the, potential investor and telling the administrators what they can and can't use from Plasmon Ltd, the overall parent company. The prospects of the administrators realising any value at all from the unwanted parts of the business are remote.

They in fact believe that there is unlikely to be any value realised at all for Plasmon shareholders. That means Hanover Investment Partners, Amvescap and the other investors have lost their shirts as the US investor gets the core archiving business for nothing, except a large slug of funding needed for product development and working capital, thought to be in the $20 million area.

Investors losing out include BT Pension Scheme Trustees and Royal Mail Pensions Trustees, which will be unwelcome news for their pensioners and savers.

Another person close to events says the administration process is not surprising, it just being part of the process by which a viable Plasmon archiving business can be created. This process could even complete in just a few days time.

Plasmon's own UDO optical media format's generational roadmap may now be limited in scope if UDO media research is disbanded.

According to sources, the remaining Plasmon Ltd. staff are clinging on from week to week waiting to see if they will be needed in the new Plasmon.

Watching a viable business trying to emerge from amidst the ravaged remains of an old one under the pressure of dramatic financial events is not a pretty sight. It is amazing, reassuring even, that rescue and refinancing talks are ongoing at all. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.