ITS Trac Limited (04806606): administration
- Status
- Administration ended
- Administration began
- 2020-02-04
- Administrators
- Scott Christian Bevan, Simon David Chandler
- Administrators' firm
- Mazars
- Formerly
- Safelead Limited
- Incorporated
- 2003-06-20
- Location
- Birmingham
- Industry
- 46140 Agents involved in the sale of machinery, industrial equipment, ships and aircraft
Why it went into administration
- Sustained trading losses
From the administrators' statement
The Company was incorporated in 2003 and specialised in aftermarket spares. It traded from two leasehold premises in the Midlands and Hampshire.
The Company is owned jointly between Tractor Spares Limited and Tiber Holdings SA. The shareholders own equa! shares. It suffered a small loss in 2018 and continued to have a loss making year in 2019. The Company has been financially supported by the UK based Joint owner, Tractor Spares Limited. It has struggled to obtain further finance to replace or increase its current bank facilities, in part, due to its ownership structure. We understand that Tractor Spares Limited were unprepared to continue to support the business alone and discussions between the co-owners were entered into but stalled. To try to resolve the issues Tractor Spares Limited offered to buy the shares for £50,000 to take full control and re-assess their willingness to provide further support. We are advised that whilst the shares are valueless an offer was made to avoid the deadlock and the potential failure of the business. The offer was refused. We understand that a counter offer set the price for the acquisition of the shares at £200,000. Tractor Spares Limited had taken legal advice that with no resolution, the shareholders agreement only provides for the Compulsory Liquidation of the firm.
Initial advice and meetings
Administrators' statement of proposals (2020-04-14) · Companies House register