Mimram Engineering Services Limited (09595891): administration
- Status
- Administration ended
- Administration began
- 2023-08-11
- Administrators' firm
- Springfields Advisory
- Incorporated
- 2015-05-18
- Location
- Leicester
- Industry
- 43210 Electrical installation
Why it went into administration
- Creditor pressure / legal action
- Supply chain disruption
From the administrators' statement
• FFirstly, there is a substantial debt due from a connected company. In June 2021, the connected company entered into a contract, which was severely delayed and fell into dispute. The contract was repudiated with circa £1.2m owing to the connected company at the point of repudiation. The Company has discharged almost all of the outstanding supply chain debt on behalf of the connected company giving rise to the substantial debt due to the Company. The connected company’s ability to repay its debt to the Company was entirely reliant upon the outcome of the dispute with the customer, which was subject to adjudication. The connected company was not successful in the adjudication and consequently the recovery of the intercompany debt is uncertain.
• Secondly, the Company has been involved in disputes of its own, which contributed to a deteriorating cash flow position. Two of these disputes, both in relation to a new customer, were subject to adjudication, which were determined on 19 June 2023. The Company was awarded approximately £262,000 (exclusive of VAT), but this has not been paid. Subsequently, the creditor filed a counterclaim against the Company in Scotland for in excess of £400,000.
• Thirdly, there is an outstanding dispute, which involves a claim for an extension of time and associated loss and expense. The Company’s claim is for approximately £200,000 and is currently ongoing.
Administrators' statement of proposals (2023-10-07) · Companies House register