SNHL Realisations 2011 Limited (04436972): administration
- Status
- Administration ended
- Administration began
- 2011-05-07
- Administrators
- Mark Granville Firmin, Brian Green, David James Costley-Wood
- Administrators' firm
- KPMG
- Formerly
- Silentnight Holdings Limited; Soundersleep Limited; Hamsard 2522 Limited
- Incorporated
- 2002-05-13
- Location
- Manchester
- Industry
- 7487
Why it went into administration
- Funding withdrawn / unable to refinance
- Pension deficit
- Parent or group failure
- Regulatory change or action
- Competition / price pressure
- Cash flow / liquidity pressure
From the administrators' statement
During 2010, although trading profitably, the directors of SNG and ABF were conscious of the requirement to refinance the busimess Their existing loan facilities with Clydesdale expired in November 201) and included a £5 0m termination fee which the directors considered they would struggle to repay or persuade another Jender to refinance, particularly with a £100m pension deficit (on a buy-out basis, per the directors’ statement of affairs) ABF and SNG had sought clearance for a 30 year back end loaded repayment plan from the Pensions Regulator (“tPR”) regarding the pension scheme deficit but this had not been granted
The Group was trying to refinance 1ts Bank facilities and/or find a solution to the pension scheme deficit when on 12 January 2011 Clydesdale agreed a sale of its term loan (ncluding the termination fee) to Grace Bay and at the same time gave 30 days notice to the Group cancelling its £5 Om overdraft facility Grace Bay also provided a Letter of Credit to Clydesdale to support 1ts ongoing CID and ancillary facilities As a result of this, the directors of ABF and SNG, concerned at impending cash flow difficulties without an overdraft, engaged KPMG to assist the Group in reviewing the options available
Initially, the directors of ABF and SNG tned to refinance the business before the overdraft expired Facilities were offered from a private equity firm to repay Grace Bay and included an offer to the shareholders However, this refinance failed and the shareholders entered into an exclusive option agreement relating to 100% of the shares with HIG, an associate of Grace Bay
Administrators' statement of proposals (2011-06-28) · Companies House register