Henlys to delist after shares slump

CRISIS-STRUCK bus maker Henlys is quitting the stock market after revealing today that its restructuring will 'substantially dilute' shareholders' interests.

Shares in the group collapsed to just 1/2p, from 17 1/2p, as Henlys admitted investors were likely to be left with 'little or no value'. They stood at 600p five years ago.

The decision to delist is the first move taken by corporate troubleshooter David James since he was parachuted in to chair the company a month ago. Henlys is now in frantic talks with bankers regarding the terms of its £184m banking facility.

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.

Henlys today said the negotiations with its banks and principal lenders were continuing and had been 'constructive'. 'The board anticipates that this will lead to a positive outcome,' it added.