Case studies

car, vehicle, vintage

vintage motor repair company

A fast sale of assets

Administration was used to follow a court order that had been independently obtained, however the business needed the additional assistance of the administration to complete matters.

The assets were of a specialist nature and by working a professional agent, the amount achieved at sale was some four times initial expectation, including what may be a world record for one particular notable item. This considerably helped in completing the terms of the court order to the benefit of the directors, shareholders and creditors. It shows how a positive result can be achieved from what seemed very difficult circumstances, when we were first contacted. 

green, rush, football

Macclesfield Town Football Club

LPA Receivership

Following an order from a longstanding HMRC winding up petition, we were appointed LPA Receiver by the secured charge holder over the stadium’s lease. We visited the site the same day enabling a swift understanding of the property and its requirements including complex involvement of extensive parties.

The immediate marketing and negotiation with the prospective buyers ultimately led to a successful sale within a few weeks with many redundant employees being later employed by the purchaser. In addition to this, due to the nature of the sale, the buyer had to meet certain requirements from the relevant involved parties, enabling durability and continuation of the club. Since sale, substantial investment has been made into the grounds and seemingly all parties remain pleased with the outcome. 

architecture, skyscraper, urban

Construction Company

Rescue and sale of construction company

We were appointed Administrators of a specialist storage construction company following significant rapid growth. The Director struggled to obtain finalised agreements with his buyers that allowed sufficient cash flow for the required supplies needed. Ultimately this led to extreme financial difficulty for the company.

Following pressure from creditors, the Administrator stepped in and successfully completed a contract which had previously proved difficult to finish, including obtaining material needed from creditors. The business was later sold by the Administrator, with creditors obtaining a dividend higher than likely expected. 

covid-19, corona virus, pandemic

Care home saved

Long Term Trading, Improvements and Sale

A seemingly profitable business faced significant cash flow difficulties through an inability to retain sufficient trading surpluses. The Administrator successfully traded the company for over 18 months, employing around 20 staff, with no redundancies being made.

During this time the Administrator re-invested funds into redevelopment of the property ultimately leading to a higher value sale, with creditors receiving at least half of their outstanding debt. This would have otherwise not been possible without the successful operating period only made achievable through substantial staff co-operation. All staff were kept, showing that although trading administrations may be challenging, they can save both companies and jobs. 

sky, clouds construction, brick layer

Family building business

Compulsory winding up with long term agreement

We were appointed Liquidator’s following a compulsory winding up order. Significant investigations took place in relation to the historic running of the company, leading to a settlement being agreed between the Director and the Liquidator regarding the company’s debts. The agreement was over a significant period of time, and although this did not lead to immediate funds for creditors (which was not an attainable option at the time), creditors could now get paid in full, with interest.

The Directors’ circumstance necessitated a long term view to be taken, and with hindsight this has assisted them as well as the creditors. It is important during some insolvencies to recognise that the most successful outcome may not always be immediately achievable, as circumstances can change over a period of time, so a pragmatic and realistic view was taken. 

offices, business, computer

Established business sale

Solvent Liquidation enabling desired distrubtion to shareholders

For a number of years the owners of an established and profitable business had been trying to sell the company on a going concern basis, however this had yet to provide the outcome they desired. Following a consultation, we advised them of a new strategy, which directed towards an asset sale rather than on an ongoing basis.

This approach still enabled a full value of the business to be obtained as the assets, on this occasion, were appealing to a higher number of buyers in comparison to a trading business, thus increasing the value. Subsequent to the sale, the remaining outstanding items for the company were dealt with through working with the accountant, directors and shareholders, which ultimately led to the desired distribution to shareholder. Full consideration of the tax benefits of the solvent liquidation process were taken.