We were appointed as Liquidators of a plant hire company. In addition to a number of recent asset purchases subject to finance obligations, the company had a large stock of plant free of finance obligations and a debtor book free of any encumbrance. The company operated from a rented yard.
The company had a substantial overdraft facility, secured by way of a mortgage debenture over the assets of the business. In addition, the directors had given a personal guarantee (limited to £100,000) in respect of the overdrawn bank account.
To protect the personal position of the directors we needed to raise sufficient cash from asset sales and debtors to pay off the bank in full, after allowing for a chunk of funds to go to the Preferential Creditors.
Because our fees come first, it’s important that we gave excellent value for money. In addition, we have built successful relationships with commercially astute agents, valuers, auctioneers and debt collectors which allowed us to maximise the realisations in this case, protecting the directors from recovery action by the bank.