Kymo Holdings Limited (05901575): administration
- Status
- Administration ended
- Administration began
- 2011-06-13
- Incorporated
- 2006-08-10
- Location
- Manchester
- Industry
- 7487
Why it went into administration
- Cash flow / liquidity pressure
- HMRC / tax arrears
- Sustained trading losses
- Rising interest rates
From the administrators' statement
2.1 The Company was incorporated on 10 August 2006 as a property holding company and did not trade prior to the Joint Administrators appointment. The Company owns the Property which Lancashire Nursing and Residential Home Limited (LNR), a 100% subsidiary of the Company, operated from as a provider of care for elderly residents (the Business).
2.2 The Business had been loss making for some considerable time. Zolfo Cooper had been instructed by the director and the Bank in June 2009 to investigate the financial viability of the Business and concluded that the Business was over geared. However, the Bank agreed to continue supporting the director whilst additional residents were sought to increase turnover.
2.3 Despite the continuing support from the Bank, the Business’ performance did not improve during 2010, In addition, the relationship between the Bank and the director deteriorated. On 20 April 2011 the Company and the director commenced high court proceedings against the Bank in relation to an interest rate hedging product that he alleged had been mis-sotd by the Bank.
Administrators' statement of proposals (2012-03-20) · Companies House register