Manufacturing industry - case study

• Sector – Pallet manufacturing
• Company annual turnover - £2m
• Number of employees – 10 

Situation

Historic tax planning resulted in the Company receiving an Advanced Payment Notice (“APN”) rendered the Company insolvent on both a cash-flow and balance sheet basis. 

Approach

Following a review of the Company’s financial position and forecasts, meetings were held with key stakeholders to consider the solvent restructuring options. Whilst these options were explored the pressure on the business continued and an assessment concluded that those options were no longer achievable.

The shares or assets of the business were marketed for sale however assets-only offers were the only ones received. The sale process and administration were approved by the key creditors and a sale of the business was completed securing the employment of all staff. 

Impact

The business and certain assets of the Company were sold by way of a pre-pack administration.

All the employees transferred to the purchasing entity thereby preserving their employment.

Get in touch

If you would like to speak with a member of our Restructuring Team, please click the button below to submit an enquiry

Contact us today