At a glance
The administrators were appointed after a winding up petition was presented against a restaurant business. A pre pack administration was identified as the best way to preserve value and achieve a better return for creditors. The business was sold swiftly through a pre pack sale, the winding up petition was dismissed, and compulsory liquidation was avoided.
Why the client needed our help
We acted for the administrators of a company operating a Russian style delicatessen and restaurant business. The company had experienced increasing financial pressure, culminating in the presentation of a winding up petition.
Following an assessment of the company’s position, it became clear that an immediate liquidation would be unlikely to deliver the best outcome for creditors. The business retained underlying value, including its trading operation and goodwill, which risked being lost if the petition progressed to a compulsory winding up.
The administrators therefore needed to act quickly to stabilise the position and explore whether a pre pack administration could achieve a better return for creditors as a whole.
How we helped
We assisted the administrators throughout the administration process and oversaw the proposed pre pack sale of the business and assets.
Our role included advising on strategy, managing the legal aspects of the sale process, and ensuring that the transaction was implemented efficiently and in accordance with insolvency legislation and best practice. This allowed the administrators to move decisively while maintaining control of the process and minimising disruption to the business.
The outcome
The sale was completed quickly and effectively through the pre pack administration process. As a result, the value of the business was preserved and a better return for creditors was achieved than would have been likely in a liquidation scenario.
Following completion of the sale, the winding up petition was dismissed and the company avoided compulsory liquidation, allowing the administrators to conclude the matter with clarity and certainty.
