NDPS announced yesterday that it was destined for administration after its major shareholders failed to reach an agreement that would enable the company to secure its future.

Following the announcement, Nipson SAS, the French manufacturing arm of NDPS and 100% owner of Nipson UK, moved quickly to clarify its position.

An open letter from Nipson SAS president Ghislain Segard and co-signed by Nipson UK managing director David Mooney said: "The current administration procedure of Nipson DPS will have no direct impact on the daily operations of Nipson SAS in Belfort or its UK subsidiary Nipson UK."

Although Nipson SAS and Nipson UK's operations are unaffected by the administration, it is not yet known how the failure of NDPS will affect the ownership of Nipson SAS.

Currently, NDPS is the majority shareholder, with a 53% shareholding in Nipson SAS, while the other 47% is owned by Creacorp, which is also one of the two major shareholders in NDPS, together with Polar.

Creacorp's dispute with Polar over the legal ownership of 23m shares in NDPS is understood to have been a contributing factor in the board's decision to place the company in administration.