MHS Electronics in receivership
December 16, 2008 //
MHS Electronics, a privately held electronic component and systems maker near Nantes, France, announced the opening of insolvency proceedings at the Commercial Court of Nantes on Dec. 5, 2008.
PARIS MHS Electronics, a privately held electronic component and systems maker near Nantes, France, announced the opening of insolvency proceedings at the Commercial Court of Nantes on Dec. 5, 2008.
MHS Electronics said the Commercial Court of Nantes decided on Dec. 10, 2008, to put the company into receivership for a six-month observation period so as to consider a recovery plan. The plan will be defined with the help of an official receiver appointed by the Commercial Court so as to help the company overcome this difficult period.
The year 2008 was tough for MHS. Due to a 20-percent decline of activity, the company took some measures to reduce costs in July. This plan consisted in the suspension or the cessation of some research programs and the implementation of a synergy and efficiency program with the other entities of the group.
Although those measures have borne fruits, they could not suffice. The uncertainty of the worldwide market, the lack of visibility for 2009 and a tight cash flow indeed encouraged MHS to open insolvency proceedings, the company indicated.
MHS Electronics, a subsidiary of the French MHS Industries holding company, is a silicon foundry provider of specialized analog and mixed-signal technologies.
In December 2005, French group XbyBus acquired Atmel Fabrication SAS on the production site of La Chantrerie, near Nantes, and created MHS SAS (Micro components High Security). To preserve its flexibility and break with Atmel's business model based on large volumes, the company focused on groundbreaking technologies.
Since the acquisition of the Atmel Nantes Fabrication SAS, and of the Zarlink Analog Foundry activities in Swindon, UK, in March 2008, the company is composed of
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