Greenwoods Communications Limited (08397194): administration
- Status
- Administration ended
- Administration began
- 2013-07-25
- Administrators' firm
- Deloitte
- Formerly
- HBS (2013) Limited
- Incorporated
- 2013-02-11
- Location
- Cardiff
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
From the administrators' statement
As noted above, the Company was formed in order to affect the purchase of trade and assets from GBL and GCL As part of this transaction, GBL, through Its joint administrators, lan Best and Tomislav Lukic of Ernst and Young (“the GBL Administrators”), registered an all monies fixed and floating charge debenture over the assets of the Company The debenture was registered on 19 February 2013 and ts limited to £500k
In order to fund the acquisition of the business and assets, the Company borrowed £3,500k from its, at that tme, 100% shareholder, Industrial Control Distributors (Holdings) Limited (“ICDH’) ICDH secured this loan by way of a second ranking all monies fixed and floating debenture, registered on 19 February 2013, over the assets of the Company Furthermore, by the end of March 2013, iCDH had introduced a further £1,586k to fund the Company's working capital requirements Therefore, ICDH was owed £5,086k by the Company by early-July 2013
Trading in the four month period to 30 June 2013 was poor and resulted in the Company incurring a loss of £1,023k on sales of £8,009k The directors, at that tme, Jeffery Smith and David Spence, recognised that the Company had insufficient funds to continue to trade and, in early-July 2013, the Company proposed a Creditors Voluntary Arrangement (“CVA”) through Marshman Price, a firm of insolvency practitioners A meeting to vote on the CVA proposal, under which unsecured creditors were due to receive 35p in the pound from future trading profits, was due on 2 August 2013
Administrators' statement of proposals (2013-09-25) · Companies House register