DT Engineering (North West) Limited (06727219): administration
- Status
- Administration ended
- Administration began
- 2021-10-28
- Administrators
- Stuart Philip Kelly
- Administrators' firm
- Aaron & Partners
- Incorporated
- 2008-10-17
- Location
- Liverpool
- Industry
- 28150 Manufacture of bearings, gears, gearing and driving elements
Why it went into administration
- HMRC / tax arrears
- COVID-19
- Supply chain disruption
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Bad debts / customer insolvency
- Sustained trading losses
- Brexit
From the administrators' statement
3.1 Prior to commencement of the Administration, SPK Financial Solutions Limited (“SPK”) acted as advisors to the Board of Directors in relation to the options for the Company. For the avoidance of doubt, neither SPK nor Stuart Kelly as the insolvency practitioner (“IP”), or his staff advised the directors personally or any parties connected with the purchaser, who were encouraged to take independent advice. At all times prior to Administration, the Board of Directors remained responsible for and in control of the Company’s affairs.
Stuart Kelly initially met with the directors on 7 September 2021 to discuss the Company’s options. In addition to the impact of Covid 19 on the business’ financial viability, it had also suffered two large bad debts. It had also suffered with the impact of Brexit on its end customer’s supply chain which had an adverse impact on cash flow for the Company. To ensure continued trading, the Company had incurred additional lending, which, coupled with its reduced turnover, meant that it was no longer in a position to sustain repayments and its liabilities exceeded its assets.
It was apparent that the Company required funding above the level available to it by its bank and invoice financiers and neither the Company nor its investors were in a position to advance the necessary funding in order to meet the ongoing loan liabilities and time to pay instalments due to HMRC.
Administrators' statement of proposals (2021-12-30) · Companies House register