Business Weekly - Cambridge, UK

Shareholders have already reaped £38.2m from a company that went bust in 1998 since a new vehicle - Micadant plc - was formed to realise Ionica's assets.

Now Micadant has asked stockholders to back a capital re duction and a share capital reorganisation scheme.

Chairman Tony Coleman tells them that the capital reduction will allow the board to return the "last asset of any significant value" - namely the Ionica dividend - while slashing the number of shareholders will dramatically cut administration costs as affairs are being wound up.

If the proposals are backed, £3.512m will be paid out and the number of shareholders trimmed from around 12,300 to fewer than 100.

Micadant's financial advisers believe the chosen route is the most effective in terms of cost and tax savings - far more so than liquidation.

However, even after the December 13 meeting, it still may be too soon to administer the last rites: The board believes there may be further realisations in the future of either a final small dividend from the Ionica scheme approximately £100,000 - or the possible sale of the company's tax losses.

Once that issue is resolved in a matter of months - the business will be formally wound up.

Ionica was Cambridge's first £1 billion turnover company at its prime before a litany of problems dragged it under.

Its founder Nigel Playford is the largest individual shareholder with just under 5.4 million - 3.1 per cent of the company.