Realising Business Assets in Insolvency

The situation

The designer and developer of an innovative building system – in essence a prefabricated house – was having difficulties securing second stage funding. Money was needed to build a prototype ready for a production line. While the company had identified interested parties, it was increasingly clear no funding would be available. As a result, the company’s secured creditor began to have serious concerns, including over some of the directors’ activities. A winding-up petition had already been issued. Not knowing what to do, the secured creditor instructed Ruth Duncan.

What we did

Ruth met with the creditor and directors. After reviewing the company’s financial status she confirmed it was insolvent and could not continue to trade. There were also issues any incoming insolvency practitioner would need to tackle. The most pressing of these was salvaging and realising the business assets. There was also uncertainty about deposits for orders from the Grand Designs Exhibition and a competition in The Times.

The winding-up petition meant the company’s bank account would shortly be frozen and the business would then be unable to continue. As a result, Ruth suggested a pre-pack administration and the sale of the business’s goodwill, intellectual property rights and exhibition house to a new venture. The speed of the sale was vital to protect the value of the assets.

The result

As a result of the sale, the secured creditor was repaid 83 per cent of his investment. The trust claims on the deposits were reviewed, but not upheld as they had become mixed with the company’s ordinary funds which was bad news for deposit holders as the funds remained in the general pot for creditors. The company was subsequently placed into liquidation so the Official Receiver could investigate directors’ activities – including their failure to properly account for deposits.

Working with you

We will work with you to explore your situation in detail and provide clear, jargon-free, honest advice. Rest assured, anything discussed with us remains confidential.

All initial consultations are free of charge and without obligation.

When you need help

Call Ruth on 01622 764 612
Call Filippa on 020 7253 7171

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Testimonials

"The liquidator is Filippa Connor, and from discussing the issues involved, I have found her to be thoroughly professional and alert to our concerns about the behaviour of [the company in liquidation]."

Mr R Hulls, Independent Surveyors Association

"I would like to re-iterate my thanks to Ruth and her staff for putting my finances back on track, so efficiently and effectively. As a now retired person, I hesitate to imagine my financial outlook had you not successfully orchestrated my IVA."

Mr S

"Filippa's words of wisdom started me on a path of recovery and I will be forever indebted to her for her understanding and compassionate approach."

CEO from Devon

"I found Ruth and her team to be patient and approachable as they were always at the other end of the phone to answer any questions that we may have thereby providing us with comforting assurances as much as possible. They were also frank and candid in telling us where they did not have an answer."

Mr L Company Director

"Dear Filippa, thank you for delivering an impassioned speech on the issues that frustrate you and your fellow practitioners. We feel sure the points you raised were noted by those who mattered and we are especially grateful for your commitment."

Peter Sargent & David White R3 (Association of Business Recovery Professionals)

"Ruth and her team helped me through a difficult time in a caring and supportive way. I know I can always go to Ruth for advice and guidance which will be given impartially and fairly for all parties concerned. This is very much an open, clear and professional relationship which I appreciate."

Mr B IVA

"The most important thing about Ruth's approach is she is professional, not pompous. She is sympathetic to clients who have problems, listening and finding solutions..."

Mr M. Referring Accountant

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