Tube Supply International Limited (03553699): administration
- Status
- Administration ended
- Administration began
- 2016-12-07
- Incorporated
- 1998-04-27
- Location
- Gosforth
- Industry
- 24200 Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
Why it went into administration
- HMRC / tax arrears
From the administrators' statement
Upon meeting the directors, it was apparent that although the Company was solvent on a balance sheet basis, due to the chronic lack of forward orders, combined with the delay in the targe debtor, the two main trade creditor balances were due and payable and the HMRC debt which was also due to be paid could not be met As such, the Company was cash flow insolvent In addition, based on the projected income and nominal orders being recerved, it was acknowledged that to continue to trade would be at the detriment of creditors as unless there was a significant upturn in orders, the cash position would be eroded further and the directors were aware that there was no guarantee that supplier orders placed would be pard for in full As such, there was a risk that without the correct advice, the directors could potentially be exposed to criticism
As there were funds avatlable to allow trade to continue in the short term, discussions took place with the directors regarding their statutory duties It was agreed that initially, potential purchasers of the business should be sought, which would allow the Company to continue to trade and creditors interests to be protected In addition, the Company’s financial position was to be fully disclosed to TPS and a further request for a cash injection made If neither a purchaser could be identified, or a cash introduction secured, it was agreed that the Company would be fully marketed for sale, with a view to obtaining either a sale of the Company or the business as a going concern, which would allow the employees positions to be protected and creditors given the best return If a sale could not be completed, the directors had little alternative other than to wind the Company down in a structured manner with creditors interests again paramount Other processes such as a Company Voluntary Arrangement were considered and discounted as with only nominal forward orders, it was
not possible to draft any meaningful projections and the Company was unable to make any firm commitment to either monthly or annual payments into such an arrangement
Administrators' statement of proposals (2017-02-21) · Companies House register