Calyx considering options to cut unsustainable debts

Systems integrator Calyx has appointed corporate finance advisor Livingstone Partners to explore the potential options to reduce its unsustainable debts levels. The UK and Irish business has expanded rapidly since its formation in 2002, acquiring nine firms including Matrix Group and Service Tec UK,

Systems integrator Calyx has appointed corporate finance advisor Livingstone Partners to explore the potential options to reduce its unsustainable debts levels.

The UK and Irish business has expanded rapidly since its formation in 2002, acquiring nine firms including Matrix Group and Service Tec UK, but it owes principal backer Anglo Irish Bank between €60m (£49.7m) to €70m (£58m).

Several sources in the UK market told MicroScope they have received communication from Livingstone to gauge the level of interest in Calyx but it is not yet clear what the final outcome will be.

There are various options on the table for the management team led by Tara Brady; a trade sale; a debt for equity swap; or accepting venture capital funding.

Founder Maurice Healy floated Calyx on AIM in 2004 but de-listed in 2007 when he took it private again in a €107m deal, backed by debt funding from Anglo Bank and €12m in equity from Alchemy Partners.

He then took a controlling stake in the firm in 2008.

In the year to 31 December 2008, Calyx Group revenues exceeded €100m and it made operating losses of more than €3m.

Calyx Group was unavailable to comment at the time of going to press.

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