New AssetCo board sues old management team for £50m

The new board of AssetCo, the company that used to maintain London's fire engines, is suing its past management for more than £50m over a "very significant decline in [shareholder] value".

The troubled Aim-listed company sold its UK business, which maintained fire engines in the capital, to the private-equity firm AB&A Investments for a token £2 in August.

That division had made a loss of £16.5m for the audited 18-month period to October 2011, precipitating a change of management.

The company said yesterday: "Following expert advice, the new board is at the early stages of pursuing claims against those associated with the past for in excess of £50m."