Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Monday, 31 October 2011

MCR bought by Duff & Phelps

MCR, the restructuring and insolvency firm, has been bought by Duff & Phelps, the global financial services and advisory firm, based in New York.  Terms of the deal have not been made public.  For the 12-month period that ended June 30, 2011, MCR earned approximately £21m in revenue, excluding reimbursable expenses.   MCR have 19 Partners and directors and the whole business is being incorporated into Duff & Phelps.

JJB Sports reveals drop in revenue of 17.7%

Troubled retailer JJB Sports has announced  a 17.7% falls in like for like sales at its stores in the 6 months to July 31st.  The company sought agreement with its landlords to close a further 43 stores as an amendment to its earlier company voluntary arrangement.

We have blogged on the JJB CVA before as this arrangement has been used to shut down poorly performing stores for the benefit of the whole company.

So what now for JJB?

The likes of JD Sports and Sports Direct are putting severe pressure on the firm and both of those companies seem to be thriving.  However, JJB Sports did say that the falling revenues were  a result of "selling out old and obsolete stock" and I suppose the saying is that "things will get worse before they get better!" 

In any restructure and rescue plan trading can be tough and sales may well suffer at first as the new structure and disciplines bed in.

That said, Christmas is key and by January/Feb 2012 it will be clearer whether JJB Sports has a better future in 2012.

Friday, 28 October 2011

KSA Group Liquidation Reports

These liquidation reports contains the following;

Notice of our appointment, a report to the creditors outlining the circumstances, a statement of affairs (SOFA), estimated deficiency account, summary of recent financial history, and a list of creditors.


These documents are sent out to all creditors as required.
Please find below the latest published reports

Sequent Power Services Limited 
Tree Frog Studio Limited 
Gasp Recruitment and Training Limited
Foremost Engineering Limited Liquidation
Assets Vin Rouge Limited
Jay Engineering Limited
Phoenia Consultants Limited
Bridgestone Surveyors Limited
Phase Building Service Limited
Early Stage Executive Search Limited
Expansive Media Limited
Walsall Fabrications Limited
B.J Bates Electrical Limited

If you are creditor of one of these companies and have not received a report then please get in touch with our Gateshead office on 0191 482 3343

Thursday, 27 October 2011

CVA and Corporation Issues

Many people worry that if they go into a CVA then they may not be able to carry over tax losses.  This is especially the case if the company is "hived down".  Please see an extract from Keith Rushen of Robinson Rushen's Guide to CVAs and Corporation Tax Issues which highlights the situation in relation to "hive downs".  A copy of which can be downloaded from our new page on CVAs and Corporation Tax
Provided the beneficial ownership of the trade is held as to 75% or more by the same persons within two years after the transfer as before the transfer, the trade is not treated as permanently discontinued nor a new one set up. Trading losses and capital allowances, but not capital losses or non trade losses, may be carried across from the transferor company to the transferee and used against future profits from the trade transferred.

Wednesday, 26 October 2011

Luminar Group in administration

Following the suspension of shares Luminar Group Holdings Plc has gone into administration.  Read the announcement here.

Luminar Group operates 76 large nightclubs in the UK, The venues are divided into various brands, of which the main ones are Oceana, Liquid and Lava & Ignite.

The company is reportedly facing losses of £188m.  According to their website "Over 11 million people visit a Luminar nightclub every year."

The nightclub was in the news recently following the death of a clubber in an overcrowded club

Norian Beds in Administration

Norian Beds, which has sites in Trowbridge and Bridgewater,  has gone into administration putting 140 jobs at risk.   The business, Norian UK Limited, is a family run firm which has operated for 27 years.  The firms managers claim that the problems at the firm came when Focus DIY went into administration owing them £250,000.  The firm entered into a company voluntary arrangement from 2009 but no doubt the loss of that income made it no longer viable.  The company had a turnover of £18m in 2010.

This is yet another firm with over 100 employees that has gone into administration in the last two weeks.  It is likely there are others that have not been publicised.  In many cases the administrators do not want publicity as it may make it harder to collect money in on behalf of the creditors.

When a large customer goes into administration it is very hard.  So how can you protect yourself?  When dealing with large customers it is difficult to ask for tougher credit terms.  The best approach in this market is do not assume that a large household name customer is by definition a good credit risk.  Look for warning signs of a business in difficulty

If you supply a firm that is in administration look at our help for suppliers pages.

Tuesday, 25 October 2011

Larger Firms Staving off Insolvency

The number of UK businesses falling down increased in September, but larger firms are showing more resolve than expected, Experian has claimed.
The Insolvency Index, published by Experian, claims that businesses that employ more than 500 people have not fallen down in the same numbers as last September.  In total only 11 large firms became insolvent compared to 14 last September.  Mind you, with such low numbers, I would not want to read too much into the figures.

However, we have noticed an significant increase in the number of businesses with employees numbering in the range of 20-200 in the past 2 weeks which have been put into an insolvency process or simply stopped trading.

I list some below;

Fylde Dairies -  20 employees
Robertsons Interiors - 16 employees
S Robinson and Sons (Steelworks) -118 employees
Trade Manufacturing Facility Ltd (Pallets) - 138 employees
Parry Bowen (Builder)- 150 employees
JGP Engineering (architectural steelwork) - 50 employees
Discover Leisure ( caravan and motorhome retailer) - 70 employees


What is driving this?

The larger companies have been able to cut headcount over the last couple of years without too much impact on their profits. Whereas medium sized firms are operating on slim margins.  In addition, The SME's are perhaps not being supported as much by the banks and we are seeing more aggressive action by HMRC to recover overdue tax.  Many construction related businesses are feeling the pressure also.

Monday, 24 October 2011

Want to dissolve a limited company?

KSA Group have just updated their experts guides and are all available for free on our site at http://www.companyresue.co.uk/

How to Rescue or Restructure Your Pub, Hotel or Inn Business - 104 pages
How to Turnaround Your Struggling or Insolvent Recruitment Business - 96 pages
The Experts guide on Creditors Voluntary Liquidation - 49 pages
The Experts guide on Company Voluntary Arrangements - 93 Pages
The Experts guide on Members Voluntary Liquidation - 17 Pages

For the first time we are making available our Experts Guide to Dissolving your Limited Company for free.  This contains over 40 pages of invaluable technical advice on how to do this along with letter templates that you need. 

This is normally available via our shop priced at £45.  However for a limited offer we are sending this out for free.  Please supply your email address and phone number to Robert Moore at robertm@ksagroup.co.uk to get your free copy.

KSA Group's Latest Insolvency Notices

Lifestyles Direct Limited
Creditors Voluntary Liquidation Notice



Timcris Readers Offers Limited
Notice of appointment of administrators



Templar Marketing Services Limited
Notice of appointment of administrators



Pumpkin Tours Limited
Creditors Voluntary Liquidation Notice



MH Legal Limited
Creditors Voluntary Liquidation Notice

Friday, 21 October 2011

Retail statistics of the week

This week has seen a couple of surprising retail statistics.

Almost £1 in every £10 spent by shoppers now involves internet purchases.  Yes that is almost 10%!


Internet purchases of clothing and footwear are up by 21% compared to a year ago, which compares to a 2.1% fall for bricks and mortar outlets.  Internet shopping has now trebled since 2007.

Internet shopping has grown for a number reasons. Cheaper deals online, faster internet connections and a better online experience helped by tablets and smart phones. Oh and it means people don't have to walk as much!


The Office of National Statistics said that the total value of retail sales has grown by 5.4% which is marginally ahead of the latest inflation rate of 5.2%.  This was better than expected.  However, still some stores struggle with the surprise announcement from Argos that showed a significant fall in sales leading to a collapse of profits of 94% in the first 6 months of the year.  The company blamed inflation hurting its lower income customers more than others.

Christmas time will be a make or break sales period for many retailers and they must get their online stores working well and able to deliver!

If you are struggling and are looking for a plan B visit or retailer rescue pages

Thursday, 20 October 2011

Options Utility Services in Administration

Options Utility Services, the Maidenhead-based Utility Contractor, has fallen into administration.   The firm has about 60 staff along with about 200 subcontractors. However, it is continuing to trade without the loss of any jobs.  This is the second utility firm to go into adminstration this week.  Brockwell and Sons from Canvey Island also collapsed with the loss of 100 jobs.


FRP Advisory, the administrators, are looking for a buyer for the business.   They said in a statement that the margins had been squeezed by rising costs which meant that the busines was suffering financially.

Its current big project is seeing it working on the infrastructure for BT OpenReach
If the business is sold then the staff contracts will be taken on under TUPE rules.

Wednesday, 19 October 2011

Scottish Insolvency Statistics

Scottish insolvency statistics showed a steep rise in compulsory liquidations in the second quarter of this year of 71% compared to the second quarter of last year.

There were 361 notices of Scottish registered companies becoming insolvent or entering receivership in the second quarter of 2011/12. This figure includes 14 receiverships, 252 compulsory liquidations, 95 creditors voluntary liquidations and 57 members voluntary liquidations.






Could some of these companies that had cashflow problems have been saved by a CVA? Possibly. If you want to hear about how CVAs can help Scottish companies then give us a call.

Number of business failures in steep rise

The latest figures for Q3 from Equifax have shown that the number of companies "failing" is up 20% on the same period last year. 

This statement below is how Equifax define a business "failure"

The definition of a business failure in the Equifax report is any business with a winding up order, or in liquidation - NOT those in administration, receivership, and company voluntary arrangements. 

We did note an increase in the numbers of advertised petitions in September which may well reflect the number of compulsory liquidations



Not surprisingly,  Equifax found that the biggest rise was in the retail sector  with a 41.8% increase in failures. The Construction industry is also finding conditions challenging with a 22.6% rise in companies going under.

We await the figures from the Insolvency Service which includes all the statistics on Administrations, Liquidations and Voluntary Arrangements.

I would like to point out at this stage that a Company Voluntary Arrangement is not really a businesss failure!  It is a business rescue!

Tuesday, 18 October 2011

Inflation rate reaches 5.2%

The inflation rate reaches 5.2% which is way above the BOE's target rate of 2%.  This inflation is mainly as a result of high energy prices exacerbated by the low exchange rate.  The Bank of England believes that the inflation has peaked and the effect of the VAT rise will drop out of the statistics bringing the headline rate down but the pain still continues. 

This month is when the Government sets the rate of the state pension and other benefits so the high inflation will further dent their ability to bring spending down.

Monday, 17 October 2011

Red Flag Alert points to insolvency risks in the Travel Industry

The latest quarterly report into the levels of financial distress in UK companies has been compiled by the insolvency firm, Begbies Traynor, in their Red Flag Alert report.

Key findings from the Q3 2011 Begbies Traynor Red Flag Alert statistics include:

The Travel and Tourism sector has seen a 49% increase in companies facing ‘critical’ distress compared to Q3 2010 and a 29% increase in companies facing ‘significant’ financial distress when compared with Q2 2011. Travel operators have given profits warnings as consumers cut back on holidays.

Across all sectors there has been a 23% increase in the number of companies in "critical" financial distress when comparing Q3 2011 to Q3 2010.  However, The report does not say how many companies are experiencing "significant" financial distress over the same period.  It is therefore difficult to be sure what the current levels of distress are.  Distress is a pretty subjective thing to measure and the current low levels of administrations and winding up petitions being issued confuses the picture further. Companies may have less to spend and are increasingly in debt but they are not falling down in quite the same way as happened in previous recessions. 

Other interesting trends has been the North South divide.

Against a UK average rise of 2%, the number of businesses facing both significant and critical financial distress in the past quarter dropped by 6% and 3% respectively for London and the South East, while all other regions in England and Wales faced increased levels of distress.


Hardest hit was the  North East with a 19% increase in business distress, followed by the North West with a 12% rise. Yorkshire, the Midlands, Wales and the South West regions all saw increases in business distress of 10%.




 

 

Discover Leisure in Administration

Discover Leisure, the Yorkshire-based caravan and motorhome retailer, has gone into administration with the 250 staff uncertain to their future.  It is anticipated that a number of jobs will be lost.


Last week we blogged that the firm was unable to secure new funds going forward and its shares were suspended.  So it is perhaps inevitable that the company ultimately failed. 


In a statement, the administrators at KPMG said: “The directors recently sought investment in an attempt to keep the business trading, however, their efforts proved unsuccessful.”


The company has been hit by consumers’ reigning in their spending on large purchases.


If your firm is facing administration and you are uncertain to your rights and whether you might be paid look at our help for employees in insolvency page.


If you supply a business that has entered administration please read our help page for suppliers

Friday, 14 October 2011

Winding up petitions analysis

KSA Group have done an analysis of the number of winding up petitions (WUPs) that have been advertised recently. 

For the month of September 2011 there were 662 winding up petitions advertised compared to 500 advertised in September 2010.  This reflects the number of companies we helped  in June and July following threats of winding up petitions.  However, in the first 2 weeks of October 2011 only 230 were advertised compared to 300 during the same period last year.  We are seeing some increased activity in the last couple of days with HMRC starting to issue petitions again.

So if you get one of these  then give us a call.  You must act!

Discover Leisure's Shares Suspended

Discover Leisure, the motor home and caravan retailer based in East Yorkshire, has had its shares suspended this morning amid concerns about its funding.

Earlier this week, the company announced that it was looking for additional funding after a pre-tax loss for the year to the 31st August of £1.5m and a drop in turnover.

This morning the company issued a statement saying; "Despite the extremely challenging trading conditions and financial environment, the board has had some success in finding financial investors who have indicated an intention to invest additional capital or acquire certain assets of the company.

"However, the board now believes that it is increasingly unlikely that an acceptable solution to the funding issues which the group faces can be secured in the necessary timeframe.

"Accordingly, the company has requested a suspension of the listing and trading of the Company's ordinary shares with immediate effect, pending clarification of the company's financial position."

Discover Leisure, based in East Yorkshire, was the subject of a company voluntary arrangement in 2009 which saw it sell 11 trading sites.

The leisure sector has taken a bit of battering recently as consumers reign in their spending.  Caravans and Motor Homes are expensive items and it may be that people are putting off purchases or not going for the best models.

Thursday, 13 October 2011

Broker Assistance for sale?

As reported in the Insurance Age today, The Auto Body Professionals Club (ABP) has said that  it has been approached by the administrators, thought to be Leonard Curtis, who are "urgently seeking interested parties with regards to the sale of a business whose principal activity is the provision of motor claims solutions and recovery services on behalf of brokers, insurers and businesses".  Offers to be made by 5pm tonight.

The ABP said it believed the company is Broker Assistance.

The North West based firm whose turnover was last reported at £15m may be in difficulty but it would be premature to say that the company is in administration.  Most likely the buyer in a PLANNED pre pack administration has pulled out.

Linford Group Stops Trading

Linford Group, a building company based in Lichfield Staffordshire, has stopped trading with the loss of 200 jobs.  This is the second time in as many days that a large builder has failed.  The building sector has always been sensitive to changes in the economic environment and the impact of a failure affects many people.

The firm Butcher Woods on 0121 236 6001 has been appointed to handle the affairs of the Linford Group and is trying to get projects completed.  It is not clear whether the business has yet gone into administration or liquidation.

The firm had offices in the North West, the South West and North Wales.

See our case study on how we rescued a building company in the North East

Scottish CVA Seminar a Success

A special thanks to all those who came along to hear Keith Steven of KSA Group talk about CVAs and their application in Scotland.  Comments were that it was astonishing that only 6 or 7 CVAs are done each year in comparison to 600+ in England. 

We also learnt about some of the issues facing professionals in the insolvency industry that are unique to Scotland. 

All those attending took away their USB Toolkits and a 150 page manual on CVAs

We will be increasing our prescence in Scotland over the next few months to try and get our message across.  As such, we look forward to meeting more finance professionals.

A number of people were unable to attend and, given the level of demand, we will most likely run another event in 2012.

We aim to promote a rescue culture in Scotland and save companies from terminal insolvency whereever possible.

Wednesday, 12 October 2011

Scottish CVA Seminar This Evening

Tonight we are holding our first Company Voluntary Arrangement Seminar in Scotland at the Edinburgh Training and Conference Venue 16 St Mary's Street, Edinburgh  EH1 1SU  4.00 Registration for 4.30 Start.

We intend to bring the rescue culture to Scotland and promote the use of the Company Voluntary Arrangement as a mechanism to save companies.   We recognize there are differences in procedures in Scotland but these alone should not explain the fact that CVAs are rarely used.  5-10 in Scotland compared to 600+ in England and Wales.  We welcome delegates views on this. 

Delegates will be getting a free 150 page guide,  A USB Insolvency Toolkit, some snacks and a glass of wine.

Tuesday, 11 October 2011

Holloway White Allom in Administration

Holloway White Allom, the London fit out specialist, has been placed in administration with the loss of 225 jobs.  The firm was established in 1882 and was associated with high-end residential and commercial refurbishments.  At its peak the firm had an annual turnover of £90m


In February this year private equity company Privet Capital injected cash into the business for a majority stake holding.

According to reports the reasons for the failure have been that a couple of projects hit higher than expected costs.  However, in the last 2 years turnover has reportedly fallen to £60m and there has been an uneasy relationship with the firms new backers.

Administrators from KPMG are handling the company's affairs.

Hulse (Electrical Contractors) Ltd in Administrative Receivership

Sutton Coldfield-based company Hulse (Electrical Contractors) Ltd which had an annual turnover of £25m has gone into administrative receivership with the loss of 160 jobs.


The downturn in the construction is thought to be to blame for the firm’s collapse.

David Bennett and David Dunckley, of Grant Thornton UK have been appointed joint administrative receivers.  They can be reached on 0121 212 4000. 

The business was founded in 1985 and owned and operated by the Hulse family.  The business had an annual turnover of around £25m.
Mr Bennett said: “Hulse had been suffering cash flow difficulties and although various solutions had been explored by the directors to save the business, none were ultimately successful.”

All 160 jobs have been lost across its offices in Sutton Coldfield, Glasgow, Oxford, and Bristol.
It worked on a number of hotel projects in and around Birmingham, including the refurbishment of the Crowne Plaza, plus commercial sites such as the Blythe Valley Business Park.

It was recently awarded a £1.8m contract to complete mechanical and electrical installation on the next phase of the Waterfront South development in Walsall. The project was due for completion next summer.

Readers may note that we have said the business is in "administrative receivership" as opposed to administration.  The Hulse website also confirms this.

What exactly is administrative receivership then?

A receiver is appointed by a floating charge holder. and this only happens where a debenture has been created over the company prior to September 2003.  Any debentures created after that date mean the holder has to appoint administrators.   There are subtle differences in the two processes.  Please read our detailed guide to administration to find out more.

Ernst & Young being sued over valuation of insolvency practice

Ernst & Young is being sued by the private equity firm Primary Capital, according to The Times, for £8.5m. The claim is that the accountants incorrectly valued its investment into Haines Watts, the business recovery practice which it bougth in 2006 before the insolvency practice entered into a pre-pack administration two years later. It was sold to RSM Tenon.

Without seeing the valuation we cannot comment.  However, many insolvency practices have found the expected increase in business failures has failed to materialize as businesses have been able to cut costs and banks have not moved to put businesses into administration.

Monday, 10 October 2011

Directors Disqualification in Insolvency

There are many reasons why a director may be disqualified ranging from fraudulent or wrongful trading, theft etc.  However, when a business does become insolvent an investigation into the directors conduct is made.  In the case of a compulsory liquidation the Official Receiver has a statutory duty to look into the conduct of the directors.

Please see below is a recent disqualification case.



Christopher and Carol Howarth, both 49, ran two bridal wear and suit hire business in Warwickshire, Crystals Bridal Centre and Christopher's Suit Hire, in Nuneaton, after launching C&C Wedding Company in September 2005.

The pair has been disqualified from being directors for seven years each after 76 pre-paid orders worth over £35,000 were left unfulfilled.

C&C Wedding Company entered into a voluntary arrangement with its creditors in February 2009 but this had failed four months later.


It eventually entered into liquidation in November 2009 with debts of more than £287,000, by which time it had taken payments of at least £35,976 on 76 unfulfilled orders, forcing some brides to pay again for dresses.

The point here is that the couple continued taking deposits when they knew that they had no way of fulfilling orders. ie the CVA had fallen down in June.  The couple should have concentrated on fulfilling existing orders and not run up more large debts.  As such any director who finds themselves in the position of taking deposits in the hope of company viability has to be very careful and should seek professional advice.

Claire Entwistle, director of company investigations north, said: "The undertakings** signed by Christopher Howarth and Carol Howarth send a clear message to other company directors; if you run a business in a way that is detrimental to either its customers or its creditors you could be investigated by the Insolvency Service and as a result removed from the business environment."

**Disqualification undertakings were introduced in April 2001, they are an administrative equivalent of a disqualification order but do not involve court proceedings. Without specific permission of a court, a person with a Company Director Disqualification, including Undertakings, cannot:-

act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company; be a liquidator or administrator of a company; or be a receiver or manager of a company’s property.

Friday, 7 October 2011

We will help companies negotiate with HMRC and other creditors

At KSA Group we can help companies by simply negotiating with HMRC, and other creditors, to postpone or restructure debts.  This may sound simple but creditors, especially HMRC, will need a compelling case for allowing the company to delay payments due.  This will mean a revised business plan with realistic forecasts backed up with evidence.

We spend almost all day every day negotiating debts with banks, HMRC and trade suppliers. Often this leads to creditors standing back from the issues and looking at the wider solution.

Let us help you.  0800 9700539

We rescue pubs and hotels!

KSA Group  rescue pubs and hotels! 

We have just finished writing our "Complete Expert's Guide to Turning Around Your Struggling Pub, Hotel or Inn Business."  The guide is over a 100 pages long and provides invaluable advice on your options if your business is in difficulty.

You can download the new guide on our page on how to rescue a pub business.

The New Evergreen Far East Limited

KSA Group Liquidation Notices

The New Evergreen Far East Limited


Meeting of the Creditors of the above named Company will be held at the offices of KSA Group Ltd, Tower 42, Level 7, 25 Old Broad Street, London, EC2N 1HN on 14 October 2011 at 3.15 pm
 
Full notice below.
 
http://www.companyrescue.co.uk/insolvency-notices/the-new-evergreen-far-east-limited-liquidation-notice

Thursday, 6 October 2011

BOE - getting their actions in before Euro collapse?

Can't help but admire the Monetary Policy Committee, recapitalising UK's banks by the back door, before the possible debacle on the continent? Even though I don't agree with the policy!

Greece will default soon, haircuts all round for the French banking system? Germany will bail out her banks, says their Chancellor.  Will the Germans bail out the Irish, Portugese and Italian banks next? This political posturing has to stop soon. 

There is, to me little point in Euro Bonds as a possible solution. Is it just me or is the mixture of toxic debt and clean debt, then being wrapped up in a pretty ribbon and called "prime", just the same thing that led to the last global banking collapse? Why repeat that?

Can the Euro survive?  The nettle needs grasped now, pain will of course follow, but the Greek exit from the Euro will not lead to the end of the financial world, as forecast by some politicians and economists. It will in time lead to a recovery.

In the world of turnaround and insolvency, debt is written off or down, recovery often follows. Creditors lose monies.  Capitalism working as normal. That I am afraid hasn't really happened sufficiently yet in the banks and by extension the insolvent states.

Extend and pretend? Printing more money? Debate but don't take action?

All to easy. Stronger medicine needed.

Wednesday, 5 October 2011

What is a Validation Order?

A Validation Order is an order from the court that in effect says that any "dispossession of assets" from a company ( ie withdrawals from a bank account) will not be made void if a winding up order is granted following the serving of a petition.  This then enables the bank to unfreeze the company's accounts.

For more details please look at our new page called - What is a Validation Order

Blogged by Robert Moore

Waters Auto Planet Administration Rumours?

It has been reported in Car Magazine that Waters Auto Planet, one of the largest car dealerships in the South of England, is facing financial problems.  Calls to any of their dealerships are being routed to a call handling service where they say that the dealerships are closed due to a financial dispute.  This could mean anything of course.  The lady I spoke to said that she expects them to reopen this afternoon.  Could it be that some sort of pre pack administration is being negotiated?  Of course a prepack is designed to allow continuation of trade and shutting down all the dealerships even if for a few hours is not a good start.

On looking at the company's accounts it appears that it has suffered falling sales since the credit crunch but its last accounts showed a healthy balance sheet and a profit of £8m on sales of £43m.  Mind you those accounts only went up to December 2009 and so the company does not have a current credit rating.

Tuesday, 4 October 2011

Davenham Group to go into administration

Specialist commercial finance company, Davenham Group PLC, has announced it is to appoint administrators after the banking syndicate, led by Royal Bank of Scotland, said it would not renew its banking facility.  As such the shares were suspended.


The directors are able to file a notice to appoint administrators at the court and this gives them a 10 day moratorium during which period creditors cannot launch legal action such as winding up petitions 

The  lender has seen major write-downs in the value of its loans made against properties since the onset of the financial crisis.

In March, Davenham said that the size of its loan book had reduced to £65.1m by the end of 2010, although it still owed the banking syndicate £86.3m.

Specialist commercial finance companies are now well placed to exploit business opportunities where the other banks fear to tread.  However, if asset values suddenly fall or they have been injudicious in their loans then they can be exposed.

Monday, 3 October 2011

Baker Tilly Merges with North East Accountancy Firm

The accountancy and business advisory firm, Baker Tilly, has announced the increase in size of its Newcastle office by way of  a local merger with The Charlton Williamson Partnership LLP.  The combined office will consist of seven partners and 60 professional and support staff.  The Charlton Williamson staff will transfer to the offices in St James Gate in the city centre.

Commenting on the merger, Jim Meakin, Office Managing Partner at Baker Tilly in Newcastle, says: “We are delighted to be joined by the Charlton Williamson partners and their team, who share our client focused philosophy. The quality client base and additional critical mass they bring through the merger will help us to continue to grow our business in the region."

The merging of the two firms demonstrates that the market for business advisory work is very competitive and it makes sense to combine forces.
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