Turkington Industries Limited (04064197): administration
- Status
- Administration ended
- Administration began
- 2012-02-13
- Administrators' firm
- Begbies Traynor
- Formerly
- JFT Holdings Limited
- Incorporated
- 2000-09-04
- Location
- Newcastle upon Tyne
- Industry
- 7415
Why it went into administration
- Cash flow / liquidity pressure
- HMRC / tax arrears
From the administrators' statement
Gerald M Krasner of Begbies Traynor (Central) LLP first met with Stuart Ashman, one of the Directors of the Company on 7 February 2012 The introduction was at the request of the Company's solicitors Dickinson Dees LLP Prior to this meeting the Directors had engaged BTG Corporate Finance LLP, part of the Begbies Traynor Group, to actively market the business with a view to a disposal of the Group To assist creditors understanding of the Group, a structure chart 1s attached at Appendix 4
At this inital meeting, the Director advised that the Group was suffering cash flow difficulties and the Company's US trading subsidiary, Turkington USA Inc (“TUSA”) was facing cash flow pressure The Directors of TUSA were actively negotiating with their bankers in order to agree a Chapter 11 process with a view to making an offer to creditors As there were significant intercompany transactions and a number of Joint contracts, any failure of TUSA would have a significant adverse impact on the Groups solvency
Despite the best efforts of the US Directors, on 1 March 2012 TUSA’s bankers, Fifth Third Bank appointed Recewers over the assets of TUSA and a sale of the company's assets was undertaken This impacted on the Company's financial position There was a loss of value in respect of the investments in the Group and with the Group's income adversely affected, there was no possibility of financial assistance to make any offer to HMRC to allow recovery action to be suspended
Administrators' statement of proposals (2012-04-12) · Companies House register