Valeside Catering Contracts Limited (04623275): administration
- Status
- Administration ended
- Administration began
- 2022-07-25
- Administrators
- Colin David Wilson, Gareth David Wilcox
- Administrators' firm
- Opus Restructuring
- Incorporated
- 2002-12-20
- Location
- Milton Keynes
- Industry
- 56210 Event catering activities
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
From the administrators' statement
3.1 To finance the share purchase, Mr Ononye granted a charge over the Company to Ultimate Finance using invoice financing. However, shortly after sale of the shares, the Ultimate Finance agreement had been breached specifically in respect of ‘direct banking’. After using invoice financing for the share purchase, the Company did not have any working capital to trade with. Some customers continued to pay into the company’s bank account and hadn’t made the changes to reflect the assignment of debt to Ultimate Finance.
3.2 It is purported that Marek Niedzwiedz (the Company’s newly appointed acting CFO at the time) made the decision to use the cash to pay suppliers but in doing so breached the terms of the agreement with Ultimate Finance. It is understood that Ultimate Finance had ‘open banking’ access and could see that the payments had been received by the Company but not forwarded to Ultimate Finance.
3.3 In view of the escalating position, Mr Ononye instructed Adrian Chambers of Opus Business Advisory Group to provide advice on 30 June 2022., Mr Ononye was asked to provide financial information in order to produce a 13 week cash flow to ascertain whether the business had sufficient cashflow to trade or allow the business time to refinance. The cashflows indicated that the business had insufficient cash to continue trade. Mr Ononye requested for Mr Crimmin to defer the outstanding consideration. This request was rejected. Options were explored with Mr Crimmin regarding a rescue package based on repaying debt within the business which ultimately fell away due to the quantum of the debt.
Administrators' statement of proposals (2022-09-20) · Companies House register