A manufacturing business had operated successfully for over 60 years but was finding it difficult to secure new contracts leaving the sole director looking for help to close the business. The Company’s accountants recommended Kingsbridge.
On initial review, the Company had a solvent balance sheet however, on further investigation contingent liabilities including lease obligations, dilapidations and warranty claims were identified as an unknown quantity. The director could not declare solvency and concluded that insolvent liquidation was the only solution to bring certainty.
Kingsbridge worked with the director to maximise asset realisations and conclude the business dealings in an orderly and sensitive fashion. This ensured employees received all entitlements promptly and creditors received a substantial return. The director was then in a position to pursue his other business interests knowing that the Company was no longer a source of distraction and stress.