Telcon Limited (01741741): administration
- Status
- Administration ended
- Administration began
- 2017-12-21
- Administrators' firm
- Evelyn Partners
- Formerly
- Legibus 333 Limited
- Incorporated
- 1983-07-25
- Location
- London
- Industry
- 26110 Manufacture of electronic components
Why it went into administration
- Pension deficit
From the administrators' statement
The Company has its origins in the mid-1800s, supplying underwater cables throughout the world. Evolving through its 150 year trading history, the Company now manufactures niche electronic components.
In 2006, a management buy-out was completed. In 2011, the board decided that due to their respective ages that the Company would seek an acquirer for the business and assets, to provide investment for future growth and development. The business was marketed for sale in 2012; at this time there were challenging market conditions which appear to have restricted interest in achieving a sale; this was compounded by a worsening pension scheme deficit. A potential sale fell through after some considerable time spent negotiating terms, ultimately due to the extent of the Company’s liabilities.
The marketing of the business for sale continued until 2016, when it was acknowledged that a sale would not be possible. The board sought to achieve a CVA, whereby the business would be sold free of liabilities, with the proceeds to be distributed pari passu to the creditors who were bound by the CVA. Throughout the latter half of 2017, the board approached a number of parties who had previously expressed an interest in purchasing the business; however, despite the best efforts of the board, this did not result in any offers. During this time, the board had also sought to reduce the Company’s overheads and control costs, insofar as reasonably possible.
Administrators' statement of proposals (2018-02-19) · Companies House register