The company was a specialist construction, safety, maintenance operator and had got into financial problems as a result of the build-up of unpaid tax liabilities, caused by historic bad debts.
The company had obtained some excellent contracts that were operating but were unable to come to an arrangement with HMRC to satisfy the existing liabilities and control of goods action had been instigated over the company’s machinery it needed for operational purposes.
The company employed 17 people and was considering going into liquidation, however, its main customer said that it would be in breach of contract if that happened and no outstanding debtor money would be paid. It was, therefore, agreed that this main contract, along with the others, could be transferred to a new company and so, protecting the outstanding revenue due to the old company and allowing 17 employees to retain their jobs inside the new business.
The Pre-Pack Administration was approved and the company now continues to flourish, keeping up-to-date with all outstanding creditor payments.