Sitol Limited (05230185): administration
- Status
- Administration ended
- Administration began
- 2019-02-05
- Administrators
- Julie Anne Palmer, Brett Barton
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2004-09-14
- Location
- Broomhall
- Industry
- 43390 Other building completion and finishing
Why it went into administration
- Creditor pressure / legal action
- Cash flow / liquidity pressure
From the administrators' statement
The Company had completed work on two projects and for a number of reasons the final payments due on these projects amounting to c.£100k were disputed and not paid. in respect of the larger project, the Company took advice and took steps to recover the sums due to it via the adjudication process. Having successfully achieved an outcome from the adjudication process, their application for summary judgement was denied. The Company had used a significant amount of its financial resources attempting to recover these outstanding debits only to receive a claim for costs. Furthermore, the solicitors acting for the customer issued a statutory demand to recover these costs.
In summary, the Company had insufficient resources to be able to either appeal against the Court Order or to discharge the costs order and ultimately had reached a point whereby the Company was unable to meet its debts as and when they fell due.
The directors sought advice from Begbies Traynor as regards the available options. it was our advice that an administration was the only practical option that would provide the Company with the protection of a moratorium from its creditors.
Administrators' statement of proposals (2019-04-11) · Companies House register