Cirqual, the aluminium extrusions and thermoplastics concern, had to borrow money to secure the acquisition of RFI Shielding and Thomas C Wild Forgings for £14.75m.
Siebe, which owns RFI Shielding, insisted on £9m cash on the nail and a deadline of last Friday, said Steve Roberts, of Charterhouse Tilney Securities, the company’s adviser.
The action has left the company `massively geared’. The City expects a placing of shares soon to ease the borrowing burden following a previous ruling by Tony Gartland, chairman of Cirqual, that acquisitions must be financed in shares.
RFI Shielding makes shielding to eliminate electromagnetic interference.