# Linder M Realisations LLP (OC338426)

> Why UK company OC338426 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/OC338426

- **Status:** Administration ended
- **Administration began:** 2016-05-27
- **Administrators' firm:** Quantuma
- **Formerly:** Linder Myers LLP
- **Incorporated:** 2008-07-01
- **Location:** Brighton

## Why it went into administration

- Funding withdrawn / unable to refinance
- HMRC / tax arrears
- Cash flow / liquidity pressure

## From the administrators' statement

On 24 March 2016 Carl Jackson of Quantuma was contacted by ALF ALF had concerns regarding the ongoing viability of the Firm given increasing working capital constraints Quantuma were advised that there were cash-flow pressures within the business and the equity partners were unable to inject further sums to support working capital We were informed that a time to pay arrangement was already in place with HMRC in respect of VAT, however, there were additional lrabilittes which the Firm would be unable to pay as and when they fell due It was agreed that Quantuma should be instructed to conduct a brief review of the business The Firm were advised of ALF’s intentions and a subsequent joint instruction from ALF and the operations board of the Firm was provided to Quantuma so that it could commence its review

The review concluded that the Firm was highly leveraged with loans and secured loans equating to 5 8 times profit after drawings as at 31 December 2015 It was identified that there was to be a significant ltability for Schedule D1 tax due in January 2017 and whilst not yet due, there was limited prospect of the Firm meeting the liability There were arrears to ALF, which constituted a breach under the terms of its security and, in addition, the next VAT quarter payment was due in May 2016 It was concluded that the Firm would be unable to make payment Whilst the Firm was considered to be balance sheet solvent, the lock-up in WIP meant that the Partnership was unable to meet its current liabilities as and when they fell due With the members unable to inject further funds tnto the business as a result of a high level of exposure in respect of short term loans guaranteed by the equity partners, it was recommended that the Firm be marketed for sale with immediate effect

Details of the marketing process undertaken by Quantuma and the appointed advisors, Pinsent Masons LLP (“PM”) and Ashfords LLP (“Ashfords”) are set out in detail at appendix 12, Statement of Insolvency Practice 16, along with details of the subsequent sale of the business of assets by the Administrators to Metamorph Law Limited (“MML”") Creditors are therefore referred to this report for further details

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/OC338426/filing-history/MzE1MzQxNTQ1MGFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/OC338426

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.