H. & E. Knowles (LYE) Limited (00745112): administration
- Status
- Administration ended
- Administration began
- 2016-11-30
- Administrators
- Simon David Chandler, Scott Christian Bevan
- Administrators' firm
- Mazars
- Incorporated
- 1962-12-21
- Location
- Birmingham
- Industry
- 25990 Manufacture of other fabricated metal products n.e.c.
Why it went into administration
- Cash flow / liquidity pressure
From the administrators' statement
Mazais LLP were first introduced to the Company in March 2016 and a meeting was held to discuss working capital finance between Rob Creswell, a manage: in Mazars Financial Planning Limited trading as Mazars Receivables Management, and the company on 11 March 2016 The initial introduction came from the Company’s accountants, Wilkes Tranters & Co Limited and no further engagement occurred after that meeting othe: than as then set out in 3 2 below
Simon Chandler of Mazars LLP was approached by the Company and met with them on 25 October 2016 to discuss its current financial position The company had encountered difficulties with 1s factoring agreement As an outcome of the meeting on 25 October 2016, Mazars LLP were instructed to review the viability of a Company Voluntary Arrangement on 28 October 2016 We worked with the Company to assist with the preparation of the balance sheets and a review of the forecasted profit and loss and cash flow statements during any arrangement A mecting was then held on 3 November 2016 to discuss the findings and the feasibility of the arrangement The outcome of the meeting was that whilst the forecasts showed a positive outcome and a return to creditors over five years, the Company had significant capital repayment tequirements that it was unlikely to restructure and which depleted its cash generation When coupled with the immediate working capital constraints the arrangement was unlikely to be implemented
Imtially we acted as advisors to the Company by providing information as to the options available in respect of the Company and the Voluntary Arrangement The alternative options were then reassessed after the meeting on 3 November 2016
Administrators' statement of proposals (2017-01-11) · Companies House register