John Bryce training UK is laboring under a debt burden estimated at some 4.3 million pounds sterling ($5.35 million).
At the beginning of this week, Bank Leumi petitioned for a receiver to be appointed to the British company. In the past, John Bryce Training belonged to European company Aris Education.
The parent company, John Bryce Training Israel, is run by Mentergy (Nasdaq:MNTE) (formerly Gilat Communications), which is operating under a debt rescheduling arrangement with Bank Hapoalim and Bank Leumi. Its debts were estimated at $53 million in mid-2001.
Mentergy took over Aris Education for $13 million. The deal took place in August 2000, in shares and cash. John Bryce was recently ranked 19th in size out of 50 leading IT training companies in in Britain. Last year, John Bryce Training UK underwent restructuring, firing 40 employees.
Last May, Mentergy published an ambitious plan for the British company, which included turning into a leader “on both sides of the ocean”, in the company’s words. At other John Bryce branches, in Germany, Turkey, and Hungary, it is business as usual.
In response to the report, John Bryce Training said it was ceasing its operations in Britain.
Mentergy has reportedly approached the secured creditors with a view to putting the British branch into receivership. The secured creditors and the receiver are attempting to sell the training business in Britain. Mentergy is expected to write off its entire investment in the British branch, and even if there are proceeds from a sale, these will not be transferred to it. Ziv Mandel, joint CEO at John Bryce Training and at Mentergy, said, ”The closure of the British activity will have no effect on John Bryce Training’s activities in Israel and Europe.”
Mentergy also announced today that it had received the approval of Nasdaq for a transfer to Nasdaq's Small Cap Market.
The transfer will be effective July 24, 2002. The ticker symbol will remain MNTE.
Published by Globes [online] - www.globes.co.il - on July 23, 2002