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U.K. Court Says Ex-Exec Sought to Derail Chinese Rescue of Aerospace Firm

Published: Apr. 16, 2026 5:46 p.m. GMT+8

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(London) — A U.K. court has found a former executive of British aerospace supplier Gardner Aerospace Holdings Ltd. breached his duties by working against its Chinese owner, underscoring how internal governance tensions, not just geopolitical scrutiny, can disrupt cross-border investments.

The case highlights a key risk for overseas investors: even after clearing regulatory hurdles, tensions with local management can affect deal outcomes, particularly in sensitive sectors.

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UK High Court ruled March 20 that Gardner Aerospace's ex-CFO/CEO Antony Upton breached duties by secretly lobbying to block Chinese owner Ligeance's rescue financing during NSI review.
Ligeance bought Gardner in 2017 for £326M; post-Covid distress led to state-backed Sichuan deal, approved Oct 2022.
Upton contacted buyers, misled NatWest; acted for personal gain to force sale, causing >£12M losses.

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Who’s Who

Gardner Aerospace Holdings Ltd.: Gardner Aerospace Holdings Ltd., a Derby-based UK tier-one aerospace supplier to Airbus and Rolls-Royce, was fully acquired by China's Ligeance Aerospace Technology in 2017 for £326 million ($420 million). Post-Covid financial distress led to a court ruling on March 20 that ex-CFO/CEO Antony Upton breached duties by secretly lobbying against the Chinese parent's rescue financing, causing >£12 million in losses.

Ligeance Aerospace Technology Co. Ltd.: Ligeance Aerospace Technology Co. Ltd. (000697.SZ), Chinese owner of Gardner Aerospace, acquired the UK firm in 2017 for £326M ($420M). Post-Covid distress prompted a debt-for-equity swap with state-backed Sichuan Development for rescue financing, approved by UK in 2022 despite ex-CFO Upton's secret lobbying against it, causing £12M+ losses.

Airbus: Gardner Aerospace is a tier-one supplier to Airbus, providing aerospace manufacturing components.

Rolls-Royce: Gardner Aerospace, a Derby-based tier-one supplier to Airbus, provides components for Rolls-Royce engines. (24 words)

NatWest: NatWest, a U.K. bank, held financing agreements with Gardner Aerospace. The firm risked breaching them amid post-Covid financial distress. Former executive Upton misled NatWest by downplaying Ligeance's funding ability due to regulatory uncertainty and portraying a delayed 2.5-million-pound payment as evidence of unreliable Chinese capital. (58 words)

Sichuan Development Holding Co. Ltd.: Sichuan Development Holding Co. Ltd., a state-backed Chinese investor, was arranged by Ligeance for a debt-for-equity swap in Gardner Aerospace. It was expected to provide guarantees supporting new bank financing amid Covid-19 pressures, but Upton's secret lobbying proposed conditions that would have deterred its participation, derailing the rescue. The UK approved the deal in Oct 2022 with conditions.

Montana: Montana is a European aerospace group contacted by Antony John Upton, Gardner Aerospace's former CFO, as a potential buyer. Upton encouraged it to prepare bids and lobby U.K. policymakers during a national security review of Chinese-linked financing.

Liberty Hall Capital Partners: Liberty Hall Capital Partners, a U.S. private equity firm, was contacted by Gardner Aerospace's former CFO Antony Upton as a potential buyer. Upton urged them to prepare bids and lobby U.K. policymakers during a national security review of a Chinese-linked rescue deal.

AI generated, for reference only