The business was under-capitalised and experiencing significant cash flow problems. It was unable to raise additional borrowings or equity investment.
We worked with the business to identify potential purchasers to facilitate a pre-pack Administration.
- The business was sold via two separate pre-pack sales (relating to different business divisions) upon appointment.
- Most employees were transferred to the purchasers, as were the majority of finance creditors. The secured creditor was also repaid in full and unsecured creditors were paid 34p in the pound.