Case Study: Matt Engineering Limited - Administration
Trading Administration following appointment by the Qualifying Floating Chargeholder
Matt Engineering specialised in the manufacture and machining of steel fabrications. Based in Hull it employed 60 staff and had annual turnover of £4.5m. Over 70% of its business was with one customer, however the agreed pricing did not reflect the work involved which resulted in the company suffering losses and falling into financial difficulty. When it became evident that the position was not recoverable the secured lender appointed Bridgewood as administrators.
On the day it went into administration the company had no more than £13k in the bank, virtually no work in progress and a significant cost base, including 60 staff. The Administrators took the decision to make 47 staff redundant immediately, retained a core capability with the remaining 13 staff. Work in progress was completed and some additional work secured, which enabled the business to be successfully traded whilst a buyer was found.
The Administrators were able to generate significant interest in the business, resulting in an agreed sales of the assets within 4 weeks. 13 jobs were secured and the buyers were also in a position to re-employ some of the staff who had previously been made redundant.
We were very pleased to secure this sale, from a difficult starting position, which delivered a positive result for all the stakeholders in the administration
Bridgewood is a trading style of Bridgewood Financial Management Limited (Company No: 07130329) and Bridgewood Financial Solutions Limited (Company No: 06957765). Registered Office: Poynt South, Upper Parliament Street, Nottingham, NG1 6LF. Registered in England and Wales.
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Paul Mallatratt (Licence No. 2039) and Louise Freestone (Licence No. 2030) are licensed to act as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales and are subject to their Code of Ethics, available in English at www.icaew.com[...]code-of-ethics-d
In carrying out the regulated profession of Insolvency, the firm is subject to the Insolvency Regulations and Guidance Notes at www.icaew.com/insolvency and the Statements of Practice at www.icaew.com[...]insolvency-regulations-and-standards