Liquidators Agent – Asset Valuation and Disposal Case Study
Case Study 1:
We have recently been instructed as a liquidators agent to value and dispose of the assets of an outdoor catering events company, whose assets comprised marquees, bar equipment, fixtures and fittings and stock. Based in south London, we attended the premises at short notice and proceeded to complete the inventory on the same day. After some research and investigation, we completed the valuation the next day, for submission to our client, a leading UK insolvency practice.
After the meeting of the company’s creditors, where the Liquidator was formally appointed to deal with the Company’s affairs, we were instructed to arrange the disposal of the assets with immediate effect. It was necessary to arrange an orderly, supervised and speedy sale and clearance of the premises, in order to minimise ongoing liabilities, such as accruing rent.
In only three site visits, we managed to value, catalogue, research, market and sell the assets, and from start to finish the whole process took around 2 weeks. This is how an efficient liquidators agent works.
The ability to make commercial decisions is key when dealing with insolvency generally and asset valuation and sale in particular.
Case Study 2:
As a liquidators agent Herts Valuations were instructed to liaise with company directors, whose wholesale food business was failing.
They had sought advice and were advised by licensed insolvency practitioners to immediately cease trading and the company was to be liquidated.
During our initial visit to the premises, we were able to ascertain which problems had caused the business to fail – a downturn in trading, decreased margins, a sudden unexpected tax bill and several bad debts.
The immediate problems were that trade creditors were pressing for payment or the return of stock, on which they had Retention of Title claims. Suppliers can claim that title to their goods does not pass until they are paid – and as they are still owed money, they still own the goods. This is not always straightforward and each individual case must be judged on its merits.
After obtaining the necessary information from the company, we contacted the suppliers and invited them to the premises to discuss their claims in detail and identify the stock they were claiming. This was then set aside, pending the resolution of the claims. In due course, we were able to advise the Liquidator on which claims should be successful, and which should not.
Finance companies were also pressing for payment of overdue instalments on equipment and were threatening repossession. After a more detailed analysis of the business and its assets, we decided there was sufficient equity in the financed assets. So, with the agreement of the company directors and the insolvency practitioners, we suggested paying off the outstanding finance from our own funds, to recover these later from the sales proceeds.
This enabled us to wait for the Liquidator’s formal appointment at the meeting of creditors and thereafter to dispose of the equipment, fixtures and stock in an orderly fashion. This in turn ensured that valuable assets were not lost to repossession and the assets as a whole reached their maximum potential, realising as much as possible for the creditors.
More information and case studies are on our Insolvency Agents Case Study Page – Click Here
Call us now on: 01707 263667
Tag:
- Liquidators Agent London
- Liquidators Agents Herts
