AMA process, leading to a pre-pack administration sale of business and certain assets
- Sector – Pallet manufacturing
- Company annual turnover - £2m
- Number of employees – 10
Historic tax planning resulted in the Company receiving an Advanced Payment Notice (“APN”) rendered the Company insolvent on both a cash-flow and balance sheet basis.
Following a review of the Company’s financial position and forecasts, meetings were held with key stakeholders to consider the solvent restructuring options. Whilst these options were explored the pressure on the business continued and an assessment concluded that those options were no longer achievable.
The shares or assets of the business were marketed for sale however assets-only offers were the only ones received. The sale process and administration were approved by the key creditors and a sale of the business was completed securing the employment of all staff.
The business and certain assets of the Company were sold by way of a pre-pack administration.
All the employees transferred to the purchasing entity thereby preserving their employment.
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