Yorkshire administrators have helped ensure the continuity of a group of Leeds claims companies after they were bought out of administration in a pre-packed sale.
Joint administrators Kelly Burton and Lisa Hogg from Sheffield-based Wilson Field were called in by the directors when the group faced financial difficulties.
The companies, Care Home Claims and MS2U, helped clients who had been mis-sold financial products and services including PPI or had been over-charged on care home fees.
The business and assets of the company were sold, for an undisclosed sum, to Acquire Inc. Ltd., in transactions which saw 32 employees of an associated company transfer to the purchaser.
Kelly Burton, director and insolvency practitioner at Wilson Field, said: “These companies ran into difficulty following the over calculation of work in progress on a contract, coupled with an accumulation of HMRC arrears. The directors contacted us for advice and have worked closely with us to achieve this result.”
Group managing director Joseph Battle said: “Problems were encountered as a result of an unprofitable contract and accrued HMRC arrears which lead to a severe cash flow shortage.
“We took professional advice and worked with the administrators to enable the business to continue as a going concern and preserve jobs of existing staff. Despite this being a very difficult time, the outcome means the business can continue.
“With the same management team we can assure clients the same high level of service in the future.”
The pre-packaged sales have been expedient in realising the maximum value for the businesses, ensuring a better return to creditors.
Kelly Burton said: “We are pleased that the restructuring of these companies has resulted in the businesses continuing to trade via the successor business.”
Clarion Solicitors handled and gave advice on legal matters relating to the transaction.