One of Britain’s leading independent precision engineering firms has been saved from collapse after a pre-pack administration deal led by its previous owner.

Sky News understands Nasmyth Group is to remain under the control of Rcapital, the specialist turnaround investor, following a transaction that is expected to salvage more than 450 jobs.

City sources said on Friday that some creditors, including the UK tax authorities, would face losses as a result of the insolvency of Nasmyth’s holding company.

However, they added that the bulk of Nasmyth’s tax liabilities were owed by trading subsidiaries and would be paid in full.

It was unclear on Friday whether any other parties had expressed an interest in buying the business, which counts Rolls -Royce Holdings among its customer base.

Sky News revealed earlier this week that Nasmyth, which supplies engineering services to the aerospace and defence industries, was on the brink of collapse after a formal restructuring plan was rejected by a court amid objections from HM Revenue & Customs (HMRC).

Based in Coventry, Nasmyth was the subject of an emergency sale process run by Begbies Traynor, the professional services firm which is also acting as administrator.

The taxman is owed nearly £3m by Nasmyth, according to court filings.

Nasmyth saw revenues badly impacted by the pandemic because of its extensive operations in the civil aerospace sector, while it was also the subject of a legal claim brought by its former chief executive.

The company is understood to be generating annual sales roughly half of its historical peak of £85m.

It also operates in the automotive and space industries.

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In a statement posted on the Nasmyth website late last week, it said the notice of intention to appoint insolvency practitioners was “part of a longer-term restructuring process initiated by the board some six months ago, to deal with a number of legacy issues”.

“It is the intention of the board to continue to stabilise the company and ensure that this important part of the British aerospace sector can continue to trade successfully for the long term.

Rcapital declined to comment.