Instalec Technology Group Limited (SC157931): administration
- Status
- Administration ended
- Administration began
- 2012-12-06
- Administrators
- Paul Dounis, Gary Norton Lee
- Administrators' firm
- Begbies Traynor
- Formerly
- Instalec Networking Limited
- Incorporated
- 1995-05-11
- Location
- Edinburgh
- Industry
- 62020 Information technology consultancy activities
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
From the administrators' statement
The Director and former Directors advised that due to the economic downturn revenues were welt below what was experienced in previous years, making it impossible to cover the cost of servicing the debts of the company to meet its financial obligations. We have been advised that the Director and previous Directors also held a number of discussions with various lenders seeking to refinance with an increased level of borrowings however the directors were not prepared to provide any additional security to secure an increase in funding.
As the Company had insufficient funds to enable staff salary costs to be met in November, the Director emailed all staff and advised them that the Company was ceasing to trade, not to return to the business premises until further notice and that the Company would be placed into liquidation. Accordingly, customers of the Company were unable to be provided with contract services from 26 November, which resulted in customers seeking alternative suppliers to complete contractual works and impacting significantly impact on the goodwill of the business.
Consequently, the Director of the Company took the decision to appoint administrators on Monday 3 December although the appointment was unable to be formally effected until 6 December 2012.
Administrators' statement of proposals (2013-02-04) · Companies House register