Orderly wind-down of not-for-profit Community Forestry Group

Sector: 
Not-for-profit
Company Size: 

60,000 acres of forest
Employees: 26

Issue: 

The group had incurred large losses due to unsuccessful diversification into environmental projects and a lack of financial control.

Solution: 

The charities were unable to continue to trade and an Administration order was made to enable an orderly wind down and distribution of assets.

Outcome: 
  • The Group’s primary assets were 7 forests, all subject to a series of complex covenants and liens.
  • Following extensive legal activity, including a Court of Appeal hearing, the forests were sold and distributions made to creditors and donors.