The plant and machinery were sold with the use of specialist plant agents for sums much higher than the depreciated book value. A number of the machines were sold to a local competitor who acquired the IPR and customer list, design and customer name. This gave them the ability to successfully convert more than 50% of the customer base and materially increase their turnover.
The administration involved trading for 4 to 6 weeks to convert stock into completed orders. This provided time to market the business, demonstrate the plant was in good working order and cover the costs of occupying a large manufacturing unit.
Within 6 months of appointment, we had sold all the assets cleared the manufacturing unit which was a significant task and pay the debenture holder in full. The administration was converted to liquidation and it is likely that unsecured creditors will receive a reasonable dividend.
Careful consideration must be given to all options available to a financially distressed business. For more advice, fill out our Contact Form and we will be in touch. Alternatively, call our FREE ADVICE LINE on 0800 781 0990.