Cortez Subsea Limited (SC385169): administration
- Status
- Administration ended
- Administration began
- 2021-11-08
- Formerly
- Mountwest Accredit Limited
- Incorporated
- 2010-09-10
- Location
- Aberdeen
- Industry
- 09100 Support activities for petroleum and natural gas mining
Why it went into administration
- COVID-19
- Cash flow / liquidity pressure
From the administrators' statement
As outlined in section 3, trading activities since the onset of Covid-19 proved challenging. When coupled with ongoing trading costs and low recovery from Trinidad and Malaysia, cash flow difficulties were exacerbated.
The CSL board approached a number of financiers and potential acquirors with what was thought to be an attractive development opportunity for either equity investment or debt funding. All enquiries were unsuccessful. The workforce was downsized and other streamlining measures undertaken, but these were insufficient to alleviate the increasing cash flow challenges.
The board approached MJMR for advice because it was apparent that CSL could not continue in its current state, and the board remained mindful of its responsibility to protect the interests of all stakeholder groups. On the basis that it was unlikely a third party would acquire/operate CSL, a pre-pack sale offered the best financial outcome to all stakeholder groups.
Administrators' statement of proposals (2021-12-16) · Companies House register