The corporate recovery team of CLB Cooper’s part of the National Baldwins R & I Group recently achieved an unprecedented payout of 65p on the £1.00 to creditors of Moulding Contracts Limited that were owed over £8 million.
The UK civil engineering company, Moulding Contracts Limited was placed into Administration by Order of a High Court Judge on 16 December 2016. Mark Getliffe and Diane Hill, part of the CLB Coopers corporate recovery team were appointed as Administrators of the company.
Moulding Contracts operated from bases in Greater Manchester, County Durham, and Oxfordshire and specialised in landfill and civil engineering projects for large corporates, and house builders.
A process to find a buyer for the £18 million turnover company was not successful. The strategy that followed was designed by the CLB Coopers team and agreed by the High Court. The strategy put forward was to allow Moulding Contracts to complete key contracts around the UK and collect debts and retentions from debtors who initially did not want to pay. The team had to demonstrate to the Court that the strategy had real prospects of success.
Two years of hard work has now paid off and the strategy has certainly been an overriding success, a final dividend to creditors was paid in December 2018, bringing the total return to creditors over two years to 65p on the £1.00.
The strategy was successful due to the efforts of a dedicated team including; Phil Yarwood, Nicola Clark who were supported in the North East by Andrew Little, Kerry Pearson, and Iain Nairn. A truly National project.
Mark Getliffe, the lead Administrator commented: “this has been an excellent outcome for the creditors in a sector where expected dividend prospects for creditors is minimal to non-existent. It is also testimony to what the Baldwins National team can do as a collective group of people. The outcome was achieved by hard work; the tenacity of Phil Yarwood on the debt collection and project coordination, the cooperation of management, good construction lawyers and excellent inter-office communication and support. There were a few tense moments involving understandably angry construction industry contractors, suppliers, employees and the like. There were also a few light-hearted and almost funny ones including a trip around a landfill site in Scotland in winter, smelling the air and wearing over-sized high Viz coats and boots; but needs must when that customer owed £3 million, putting up with the smell and the rats was well worth it when we completed the job and got paid all our invoices (less the odd chip) !! .”
The National Baldwins Restructuring and Insolvency team gives the Baldwins Group UK coverage from Scotland (Campbell Dallas), throughout the NE and NW to the Midlands and now Wilkins Kennedy in the South. We can look after all 80+ offices including any overseas owners of UK companies and businesses.
If you have any queries about rescues and restructuring opportunities or client needs, please contact your local R & I representative or Mark Getliffe who can put you in touch with the right person to help you.
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