FMA Process Engineering Limited (01541241): administration
- Status
- Administration ended
- Administration began
- 2017-08-03
- Administrators' firm
- Mazars
- Formerly
- Firth-Melvin Automation Limited
- Incorporated
- 1981-01-26
- Location
- Droitwich
- Industry
- 71121 Engineering design activities for industrial process and production
Why it went into administration
- Cash flow / liquidity pressure
- Competition / price pressure
From the administrators' statement
The Administrator was introduced to the directors initially as a result of their direct contact with MB Insolvency.
The Administrator initially met with the directors on 25 July 2017 and provided generic advice regarding the insolvency options that would be available to the Company. It was apparent at that stage that the Company needed additional funding to assist with its cash flow problems. The Directors were not in a position to provide the additional funding and due to the circumstances and the Company’s obligations in respect of the CVA an approach to a third party for funding was not considered appropriate. Due to the cash flow position and the accumulation of post CVA creditors it was apparent that the Company needed to enter into a further insolvency process which provided further protection other than that afforded by the CVA.
At the meeting on 25 July 2017 the directors advised that a competitor had expressed an initial interest in purchasing the business and certain assets. The remainder of the meeting was spent discussing the mechanics of a pre-packaged sale in administration.
Administrators' statement of proposals (2017-10-02) · Companies House register