NAL Realisations (Staffordshire) Limited (00505253): administration
- Status
- Administration ended
- Administration began
- 2012-09-18
- Administrators' firm
- Begbies Traynor
- Formerly
- Norton Aluminium Limited; Norton Aluminium Products Limited
- Incorporated
- 1952-03-08
- Location
- Manchester
- Industry
- 24420 Aluminium production
Why it went into administration
- Creditor pressure / legal action
- Supply chain disruption
- Competition / price pressure
From the administrators' statement
As was fully detailed within the Proposals, the Company had traded profitably for many years, however, had latterly found itself subject to a nuisance claim by some 132 local residents The Oirectors initially referred this claim to the Company's insurers, who rejected the claim on the basis that it was outside of the policy’s limits and therefore sought specialist legal advice on the position The advice given was that the claim could be successfully defended and as such, the Company funded a lengthy and costly defence against the action However, upon release of the draft judgement following a two week trial, the Company found that whilst tt had been successful in defending three strands of the clatm, they had been found hable for odour pollution {t was estimated that this claim would run to in excess of £4 2 millon, with the Company also potentially liable for costs, which were estimated at in excess of £3 million
The Company sought to negotiate a settlement with the claimant's representative, however, an agreement could not be reached and with the judgement due to be handed down on 4 September 2012, the Directors sought professional insolvency advice The Directors believed that upon the handing down of the judgement, the customers, comprising several major automotive constructors would seek to place ongoing orders elsewhere in order to maintain confidence in their supply chain and that the Company’s own supplters would see the Company’s credit rating drop and as such not be able to insure the debt, leading to ongoing supplies only being made on a cash basis, with the outstanding balances due also requested These issues above placed the Company into an insolvent position
Negotiations were entered into with the secured funder ABN Amro ("ABN") who agreed to continue to support the Company tn the short term whilst a marketing exercise was undertaken in order to sell the business Such an exercise was undertaken and despite some interest from a competitor tn India, no formal offer was received from a third party and the only firm interest was shown by Henry Dickinson, the Director
Administrators' statement of proposals (2013-02-11) · Companies House register