The director first contacted KSA Group to discuss the company’s rapidly deteriorating position after its European parent operation filed for bankruptcy in the European courts.
After an initial telephone consultation, a meeting with the UK based director and KSA Group Regional Manager, George Davis, was arranged. At the meeting, the financial position of the business was discussed in depth, as were any options that may have been open to the company. By that time, given the critical position of the business, the duties and responsibilities of the remaining directors were also covered.
Up until this point, the company, a wholly owned subsidiary of the European parent, had operated as a service company. It was set up in the UK to provide UK based cabin staff for use on the parent company’s commercial flight operations out of the UK.
In discussion, it quickly became obvious that as the company had no other contracts, and with creditors now pressing in the UK, there was effectively little or no time to restructure, and to look for new work. The demise of its parent operation had effectively brought things to a close in the UK.
Following the meeting, KSA reported to the remaining directors, both UK and European based, again, providing a detailed assessment of the position. After further consideration, the directors decided that liquidation was the only remaining option.
Following appointment, the liquidator dealt quickly with the European lawyers dealing with issues related to the parent company, disclaimed leases on two offices at different Airports, and dealt with any remaining staff as well as UK creditor issues.
Although disappointed at the outcome through no fault of his own, the UK based director had been battling against a variety of complex issues surrounding the potentially imminent demise of the parent company for many weeks.
As such, the decision to enter a Company Voluntary Liquidation allowed matters to be dealt with quickly and professionally, leaving the director to get on with his life, whilst at the same time, maximising the interests of the creditors.