Castle Business Finance Ltd (10303995): administration
- Status
- In administration
- Administration began
- 2020-06-22
- Administrators
- Paul David Allen, Alastair Massey
- Administrators' firm
- FRP Advisory
- Incorporated
- 2016-07-29
- Location
- London
- Industry
- 64992 Factoring
Why it went into administration
- Funding withdrawn / unable to refinance
- COVID-19
- Bad debts / customer insolvency
From the administrators' statement
In 2018, the Company breached covenants within the facility agreement with AGC. The breach of the covenants primarily occurred as a result of a number of customer balances ~ becoming bad debts which, in turn, resulted in the Company becoming undercapitalised and unable to meet the base covenants of AGC’s facility.
Consequently, AGC and the Company entered into negotiations with a view to finding a solution, with the Company tasked with remedying the undercapitalised position and reducing overheads. The Company was, however, unable to achieve a satisfactory outcome for AGC. : 7 - ,
As a result of the above, the Company and AGC jointly engaged FRP in January 2020 to undertake an AMA process with a view to exploring the possibility of investment and/or a sale of the Company's business and assets. The process was unable to identify a solvent: solution, with two credit-backed offers being received on an insolvent transaction basis.
Administrators' statement of proposals (2020-09-03) · Companies House register