Property special purpose vehicle – case study

Liquidation with significant assets requiring an interim distribution.

We were engaged by a leading land and property development Group in the UK.
The Group had successfully disposed of a number of completed development sites and was exiting a number of other commercial ventures. The Group wanted us to advise on seeking a tax-efficient return to its shareholders.

A review of the Group structure was undertaken to understand the wider issues that existed across their corporate portfolio.
We advised on the most appropriate restructuring process for each company no longer required and worked with the Group, advising which companies should be placed into solvent liquidation and at what point, to best minimise the risk and ensure the smooth running of the liquidation.
Detailed due diligence was undertaken to provide the directors with confidence that no contingent liabilities existed that could crystallise against the corporate entities.

The due diligence completed during the initial phase provided clarity to the client around the level of return that could be distributed to the significant number of shareholders immediately following the appointment of liquidators.

Creditors were paid during the Liquidations and once tax clearances were received from HMRC, a final distribution was made to the shareholders.

During the course of the Liquidations, investors were kept fully appraised of the positions and good relations were maintained throughout.

Despite the high asset values and the significant number of shareholders, both Liquidations completed within 12 months.

If you would like to speak with a member of our Restructuring Team about a solvent solution for your business, please click the button below:

National contacts