Liquidations
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Helping a foreign company dealing with a loss-making UK subsidiary
Johan and Fredrik were employed by a Swedish PLC and were the representative directors of a loss-making UK subsidiary. Because of financial pressures in Sweden, it was decided to close the UK company at short notice. This was problematic in that the principal asset was a consultancy contract for which key UK employee loyalty was required but not available. We helped Johan and Fredrik negotiate with the holding company and employees for funding to pay terminal bonuses and for the holding company to recoup this money from the eventual proceeds in the liquidation. This required a short notice liquidation and a court order to ratify the terms of the agreement we had reached.
"Liquidation is not about closing everything down and handing the assets to the agents. An effective liquidator will think carefully and creatively about how best to realise value, particularly with people-based businesses. Planning and actions in the pre-liquidation period is often key, particularly where customer contracts are concerned."
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