In early 2013, this printing company was facing the loss of a major contract that would have made the business unviable. A detailed review was carried out by Eric Walls of KSA and his team, to ascertain whether the company could be restructured in a CVA.
This proved impossible and the plan was to trade the business whilst seeking buyers. Given the asset heavy balance sheet and the lack of future work, the number of interested parties was very low once the administration order was made, despite extensive marketing by our agents.
A decision was taken to run down the business, complete work in progress and make most of the employees redundant and seek a breakup of the business assets. This was done in a controlled fashion and the secured creditors (asset based lenders) were paid in full. Preferential creditors were paid in full and a modest 10p in £1 was paid to the unsecured creditors after administration and voluntary liquidation fees and agency costs.