K & M Moxon Limited (06810895): administration
- Status
- Administration ended
- Administration began
- 2019-11-21
- Administrators' firm
- Kroll
- Incorporated
- 2009-02-05
- Location
- Manchester
- Industry
- 42990 Construction of other civil engineering projects n.e.c.
Why it went into administration
- Sustained trading losses
- Competition / price pressure
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Creditor pressure / legal action
From the administrators' statement
The main reason for the Company's failure was due historical loss-making groundworks contracts, which culminated in the Company being removed from one of its contracts due to delays and underperformance with outstanding monies from applications totalling c£300.000. This had a significant knock on effect on cash flow and the Company vacated further sites with outstanding applications of c£175,000.
The Company was funded by an invoice-discounting facility with Aldermore. The delayed and loss-making groundworks jobs significantly damaged the Company's cash flow position and accordingly limited availability of funding under Aldermore s invoice discounting facility The outstanding indebtedness under the invoice discounting agreement at the Appointment Date was £117,846. subject to interest and charges.
The Company's deteriorating cash flow position also affected the Company's ability to meet creditor payments as and when they fell due As such, a Winding Up Petition was filed on 7 November 2019, This resulted in Duff & Phelps recommending that the Secured Creditor appoint the Joint Administrators as their security allowed them to appoint Administrators in circumstances where a Winding up Petition had been issued.
Administrators' statement of proposals (2020-01-22) · Companies House register