Helping a major supplier minimise the effect of a customers' insolvency
Tom, the managing director of an electronic equipment manufacturer became worried about the difficulties of a major customer, a hire operator. The issues were minimising a bad debt and avoiding distortion in the second-hand market from distressed sales. Following his introduction, we briefed the directors of the customer on the insolvency options and following a business review, Tom, the directors and we all concluded that the best way forward was to find a buyer for the business as a going concern and liquidate the company.
We worked together to find interested parties and negotiated with the providers of asset funding to obtain discounts to allow a going concern sale. We were then appointed as liquidator to the customer following the disposal to realise the remaining assets and distribute funds to creditors.
"Liquidation is often inevitable to deal with an insolvent customer but an effective liquidator will deal with major suppliers to ensure the impact on them is minimised."
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