Notice of Intention to Appoint Administrators

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Northumberland firm Merit files Notice of Intention to Appoint Administrators

in A guide for redundant employees in administration or insolvency situations Construction Notice of Intention to Appoint Administrators

The Northumberland Gazette has reported that A Cramlington-based construction company has taken action to “protect the position of the business” after a winding-up petition from HM Revenue and Customs (HMRC).Merit Group Services Limited has filed a Notice of Intention to Appoint Administrators, saying the petition caused project delays and “significant additional pressure” on cashflow, though it remains “confident that a solution to this difficult situation can be found.”The company heads a group of 16, including Merit Holdings, which is working with Northumbria Healthcare NHS Foundation Trust on the £35m Berwick Community Hospital and a medicines manufacturing unit at Seaton Delaval. Some of the hospital units have been built at Merit’s Cramlington site and transported to Berwick for installation.A Merit spokesperson said: “The recent filing of a winding up petition against Merit Group Services resulted in certain customer projects experiencing delays, which in turn has placed significant additional pressure on the group’s cashflow.“We have therefore taken the decision to file a Notice of Intention to Appoint Administrators in order to protect the position of the business while we explore options. We remain confident that a solution to this difficult situation can be found.”HMRC has not disclosed its reasons for the petition, saying such action is only taken “once we’ve exhausted all other options.”A trust spokesperson said: “Northumbria Healthcare has been made aware that Merit has filed a notice of intention to appoint an administrator. This is a very unfortunate situation and we appreciate that this will be a very difficult time for all involved.“The trust is continuing to work in partnership with the organisation and its advisers, and has adhered to the contractual agreements in place.“We have robust plans in place to ensure construction work continues to progress both the Berwick Community Hospital and Medicines Manufacturing Centre at Seaton Delaval.“We remain focused on delivering both projects as planned and are in on-going dialogue with all relevant parties to ensure continuity and minimise any potential disruption.”Construction businesses have the highest insolvency rates in part due to the "lumpy" nature of their income, complex contracts and unforseen construction problems.See how RMT KSA has saved construction companies using our innovative turnaround techniques.  We also have an office in Berwick!

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Northumberland firm Merit files Notice of Intention to Appoint Administrators

Cardiff Rugby To Go Into Administration

in News Notice of Intention to Appoint Administrators

Cardiff Rugby is intending to appoint administrators according to reports on the BBC and in the Daily Mail.  The Welsh Rugby Union is expected to step in to stop the club disappearing as was the case with the Wasps in England.Investment group Helford Capital Limited completed a Cardiff takeover in January 2024 after it acquired an 84.55% shareholding in the regional team.In March 2024, Cardiff announced a loss of £2.1m for the year ending June 2023, with the next set of accounts due in May 2025.It is understood that the Club will honour all signings for next season and, what will no doubt come as some relief, there is no automatic points deduction if a club goes into administration.The club has been playing since 1876 and is regarded as one of the grand old clubs.  Its home ground is Cardiff Arms Park which has played host to famous victories over even national teams like the All Blacks.

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Cardiff Rugby To Go Into Administration

Typhoo Tea In Administration Threat

in A guide for redundant employees in administration or insolvency situations Notice of Intention to Appoint Administrators

One of the Britain's oldest tea companies has filed an intention to appoint administrators in the court. This follows a very difficult year with sales falling and an expensive break in at one of its factories.  Sales fell from £38m to £25m in 2023 and it had to take an exception cost of £24m relating to the damage of stock and equipment following the break in. The company was founded in 1903 by grocer John Sumner and was at one time the best selling tea brand in the UK. It should be noted that the intention to appoint administrators is a way of protecting the company from aggressive creditor actions, such as winding up petitions.  It gives the company protection for 10 days whilst it tries to rescue the business.  This might be additional finance or a sale.  EY is named as the possible administrator and will be looking at the options. Private equity firm Zetland Capital has been the company’s majority shareholder since 2021. Typhoo’s debts stood at £73m at the end of September 2023, compared to £53m a year earlier. According to the company's accounts it has made losses in excess of £40m every year since 2019.     

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Typhoo Tea In Administration Threat
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Notice of Intention To Appoint Administrators

in Notice of Intention to Appoint Administrators

A notice of intention to appoint administrators is when the company files a document to the court to outline that it intends to go into administration if a solution cannot be found to its immediate financial problems. It can be used as part of the pre-pack administration process as well as used to restructure a failing business to avoid its liquidation.

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Notice of Intention To Appoint Administrators