Spring to step down from ailing firm

DICK SPRING is to step down as chairman of troubled software company Airtel ATN.

The former Tánaiste and Labour Party leader has been chairman of the Dublin company for a number if years.

He will exit the post as part of a rescue package for Airtel, which develops software for communications between aircraft and ground support services.

Last month, Mr Spring warned that the company, which is listed on London’s Ofex market for small firms, would have to be wound up unless new investors were found.

Airtel is to sell its main operating subsidiary to a management buy-out and an investor group will pump up to €200,000 into the company to provide working capital until it can find an acquisition opportunity.

As part of the investor group’s conditions, Mr Spring will be replaced as chairman by Tony Hoskinson, a veteran in rescuing ailing companies.

“The investor group will be undertaking to procure a reverse takeover of a suitable business to assist in the rebuilding of shareholder value. This proposed reverse takeover, which will be subject to shareholder approval, is likely to be in either the media or support services sectors,” Airtel said.

The company ran into financial difficulties in 2001 after a new product failed to attract sufficient customer interest.

Shares in the company were suspended from trading last year.