Troubled Henlys' shares suspended

SHARES in crisis-bound bus maker Henlys were suspended today in the latest stage of the company‘s efforts to stave off financial ruin.

The decision to delist was taken by corporate troubleshooter David James, who was appointed as chairman almost eight weeks ago.

Henlys, struggling under the weight of some $560m (£310m) of debt, has so far failed to file its interim results and it warned investors earlier this month that its proposed restructuring would leave little value in the shares.

Henlys will not relist on the London Stock Exchange but could look for a listing in the US, which is now where the bulk of its main bus-building business is based.

James said last week that talks with the company‘s lenders – mostly banks but also Swedish car and bus group Volvo – had been constructive and could lead to a 'positive outcome', but there is still no word on their precise progress.

Henlys‘ fortunes have waned since the company‘s heyday five years when the shares were worth 600p each – last week they dropped to just 0.32p. With today‘s suspension they are effectively worthless and any shareholders who did not get out over the past week may well have lost their investment.

In March, the group, maker of Blue Bird school buses in the US, issued its third profit warning of the year after its TransBus joint venture went into administration.

James, 65, is known for generating value from companies perceived as lost causes. Four years ago, he was brought in to prevent the Millennium Dome from closing prematurely.