AMA process, leading to a pre-pack administration sale of business and certain assets resulting in a distribution to the unsecured creditors
- Sector - property
- Annual turnover - £3.2m
- Number of employees – 41
The Company operated as the provider of property maintenance and support services including reactive maintenance for blue-chip clients in the retail, hospitality and leisure sectors and employed 41 members of staff.
Due to the uncertainties arising from the Brexit vote, the sectors in which the Company’s client base operated postponed capital expenditure projects which led to a decrease in turnover for the last three years.
The onset of the Coronavirus pandemic compounded the issues and the director sought our advice.
The shares in the Company were marketed for sale and a purchaser was identified, however, the transaction did not complete due to the national lockdown.
The business was marketed for sale a second time. Further interested parties were identified, however, it became clear that only a sale of the business and certain assets by an administrator would be achievable given the level of accrued historic liabilities and the current and expected future market conditions.
The business and certain assets of the Company were sold by way of a pre-pack administration to an unconnected third-party purchaser that operated in a similar market.
All the employees transferred to the purchasing entity thereby preserving their employment.
The secured creditor was repaid in full.
Distribution of more than 35p in the £ was made to the unsecured creditors.
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