A.B.F. Limited (00273919): administration
- Status
- Administration ended
- Administration began
- 2011-05-07
- Administrators' firm
- KPMG
- Formerly
- Contessa Upholstery Limited; Buoyant (Sheffield) Limited; Atkin Ansell & Co. Limited
- Incorporated
- 1933-03-15
- Location
- London
- Industry
- 3614
Why it went into administration
- Funding withdrawn / unable to refinance
- Pension deficit
- Regulatory change or action
- Competition / price pressure
- Cash flow / liquidity pressure
- Parent or group failure
From the administrators' statement
During 2010, although trading profitably, the directors of the Company were conscious of the requirement to refinance the business Their existing loan facilities with Clydesdale expired in November 2011 and included a £5 Om termination fee which the directors considered they would struggle to repay or persuade another lender to refinance, particularly with a £100m pension deficit (on a buy-out basis, per the directors’ statement of affairs) The Company had sought clearance for a 30 year back end loaded repayment plan from the Pensions Regulator (“tPR’’) regarding the pension scheme deficit but this had not been granted
The Group was trying to refinance 1ts Bank facilities and/or find a solution to the pension scheme deficit when on 12 January 2011 Clydesdale agreed a sale of its term loan (including the termination fee) to Grace Bay and at the same time gave 30 days notice to the Group cancelling its £5 Om overdraft facility Grace Bay also provided a Letter of Credit to Clydesdale to support its ongoing CID and ancillary facilities As a result of this, the directors, concerned at impending cash flow difficulties without an overdraft, engaged KPMG to assist the Group in reviewing the options available
Imtially, the directors tned to refinance the business before the overdraft expired Facilities were offered from a private equity firm to repay Grace Bay and imcluded an
Administrators' statement of proposals (2011-06-27) · Companies House register