Aerial Painters Limited. A bespoke, specialist service provider that painted and maintained radio masts, plus other large structures of up to 400m.
As one of only four providers in the market place, the director had built up a good client base including ‘blue chip’ companies. One significant contract being the preparation of masts for the digital switch over.
Unfortunately, bad debt and payment delays caused cashflow problems for the company, who then fell behind with their creditor payments.
The insolvency insolvency team considered the main assets of Aerial Painters Ltd to be: goodwill, their work in progress and their capability to work with an established client base. It was reasoned that these assets would be lost to creditors if the company went into Creditors Voluntary Liquidation.
Therefore, it was agreed that the most appropriate insolvency procedure for the protection of assets and the preservation of goodwill would be Administration.
The business was marketed for sale by the Administrators and two offers were received prior to the deadline.
The Director had expressed an interest in the business prior to appointment and the Director’s offer was the best offer received.
The sale was completed with the following successful outcomes:
- Sale agreed and the consideration collected.
- Business and employment preserved.
- Secured creditor repaid in full.
- Dividend for unsecured creditors
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