17 September 2018: BRI Business Recovery and Insolvency’s Northampton office have paid a company’s secured creditor under the terms of their fixed charge the sum of £50,000 four days after being appointed Liquidators. The payment represents the sum received from the sale of the company’s intellectual property. It is anticipated the secured creditor, in respect of their floating charge, will receive a further significant return with unsecured creditors also receiving dividend.
BRI were first contacted by the secured lender, the previous owner of the business, who sold the business and assets to a newly formed company “ABC”, with the purchase price due to be repaid via deferred consideration. Due to difficult trading conditions, ABC could not pay the deferred consideration.
BRI met with the directors of ABC and the secured lender, offering advice to all concerned as to ways to try and avoid administration/liquidation. Unfortunately, a formal insolvency procedure could not be avoided and the directors of ABC, pleased with BRI’s previous advice in ways to try and avoid an insolvency process and, with approval from the secured lender, appointed BRI as liquidators, thereby avoiding additional and unnecessary costs of placing the company into administration.