Lancashire-based Clean Air Power has been bought as a going concern for £250,000 by Hardstaff Dual Fuel Technology Limited , a subsidiary of Vayon Holdings Limited.
The troubled Leyland firm – the global leader incompression-ignited natural gas systems and software for heavy duty vehicles – had been seeking a buyer for some time.
Clean Air, which counts Chelsea owner Roman Abramovich amongst its shareholders, said it intends to cancel its admission to trading on AIM.
Rodney Westhead, Chairman of Clean Air Power Limited, said: “As noted in previous trading updates, the fall in oil prices globally has had a drastic impact on sales in the US and Russia. This significant challenge to the business was compounded by our customer on the South East Asian program deciding in June this year to extend testing rather than to proceed directly to the full production program as anticipated.
“These circumstances created significant pressure on the Group’s cash flows.
The Board, supported by KPMG, has conducted an exhaustive strategic review, exploring a range of refinancing and restructuring options to maximise the value of the Group, but the response from potential investors and buyers was disappointing.
“The Group could not continue without financial support and, therefore, the Board is satisfied that this was the best course of action.”
Shane Hussain of the Vayon Group said in a message on the firm’s website: “We at Vayon are delighted with our new venture, and I look forward to meeting you over the coming weeks to further outline our investment plans for the integrated business.”