Distress sale and closure leading to a sale of certain assets for the benefit of creditors
- Sector – Aftermarket repairs and supplier to excavator market
- Annual turnover - £3 m
- Number of employees – 27
The Company provided spares and repairs to owners and operates OEM excavating equipment and employed 27 staff over a number of sites.
The Company was originally a joint venture however the UK parent had identified that the business required continued support but was unable to agree to the terms of that support with its overseas partner.
The Company required further working capital and ongoing commitments from its owners however an impasse resulted in the inability to provide the confidence that the matter could be resolved.
A review of the Company’s financial position was undertaken and with no resolution between the shareholders the only alternative was a sale of the business and assets for value to maximise the return to creditors. A confidential marketing process was commenced and continue for a month and despite a number of however being received the only on capable of completing was then frustrated.
The position of the Company was such that the directors were unable to allow any further time for the marketing process and the Company was placed into Administration.
We reviewed the position and we were unable to continue to trade the business and the majority of staff were made redundant.
We continued to market the business following our appointment which ultimately resulted in a sale for the value of certain assets of the business.
The business and certain assets of the Company were sold by way of a pre-pack administration and resulted in a partial return to creditors which would otherwise not have been possible.
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