UK-based aviation engineering specialist Nasmyth has completed a financial restructuring that has saved the business from collapse.

The firm released a statement saying that the board has completed a restructuring of the holding company “that will provide both the financial security and capital base it needs to continue to prosper into the future”.

Sky News that turnaround specialist Rcapital will retain control of Nasmyth following the pre-pack deal after a previous restructuring proposal was blocked by the HMRC.

Nasmyth said in a statement: “As part of the restructuring plan, the company has been further supported through the provision of a further £5 million financing facility to support its planned growth in 2023/4

“The board appreciates the support and understanding shown by Nasmyth’s customers, suppliers, and employees in the face of media speculation over the course of this week.

“The successful completion of the restructuring of Nasmyth Group Limited and continued financial support from Rcapital, will enable the company to complete its turnaround and to support its customers by increasing its production volumes in line with the anticipated increase in flying hours and defence production volumes globally.”

The successful restructuring means all 450 jobs at the Coventry-based firm have been saved and group’s trading subsidiaries have continued to trade as normal.

The statement continued: “Over the course of Rcapital’s ownership, Nasmyth has invested in new technology and skills development in UK, a new management team and the expansion of Nasmyth’s Asian manufacturing capability.

“With the restructuring complete and the new financing facility in place, this leaves Nasmyth well-positioned to prosper in the future.

Tony Upton, chief executive of Nasmyth, said: “With Rcapital’s ongoing support, Nasmyth will continue to make significant steps forward operationally and financially.

“We are well on the road to achieving our ambition to becoming a guardian and developer, of the key machining and fabrications skills necessary to support whole manufacturing life cycle for the aerospace and defence sectors.”

Nasmyth supplies specialist engineering services to the commercial aviation and defence industries and counts Rolls Royce among its customers.

It fell into administration, with tax debts to HMRC reported at £3 million in court documents, during which Begbies Traynor oversaw a emergency sale.