IPA exclusive industry update from Insolvency Insider

IPA Insolvency Practitioner newsletter, May 2024

A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Dina Kovacevic. More information on all the stories and the link to subscribe to the newsletter is here.

Recent insolvencies

• Elite Emergency Medical Services Ltd, a Tamworth-based private ambulance company, entered administration on 19 April. The company reportedly struggled following its acquisition of competitor Polaris Medical Services out of administration just last year. Immediately on their appointment, joint administrators Dominik Czerwinke and Amie Johnson of Begbies Traynor completed a pre-pack sale to an unnamed party, saving almost 500 jobs. Bibby Financial Services and HSBC Bank have registered charges against the company.

• Geoffrey Osborne Limited, a Surrey-based contractor which has been trading for almost 60 years, has entered administration after a valiant fight to keep the business alive. The company was founded by Geoffrey Osborne in 1966. Family member Andrew Osborne has been chairman since 2012. The company has been attempting to restructure following macro-economic challenges faced since Covid and the consequent loss of confidence in the sector from investors and funders. The company sold various divisions as part of this restructuring, securing the employment of over 850 people, but this was not enough to save the main business. RSM were appointed administrators and immediately laid off approximately 100 staff, leaving a few on to assist with the administration process. Osborne Group Holdings and National Westminster Bank have registered charges against the company.

• The British Youth Council (BYC), a charity that worked to empower young people and promote their interests, entered liquidation on 26 April. The BYC has existed for over 70 years and was initially established by the Foreign Office of the British Government to unite young people against communism. The charity gained independence from the Government in 1963 and became a UK charity championing the views of young people to government. PKF Littlejohn Advisory were appointed to assist the Trustees of the BYC to place the charity into a CVL in March as it encountered financial difficulties following the collapse of The Body Shop, a major funder. James Sleight and Peter Hart were appointed joint liquidators following a creditors’ meeting in late April, and said that, although outstanding debts are relatively low, creditors are unlikely to see a dividend. However, there is potential value in the sale of intangible assets including the brand which may also enable some form of the charity’s work to continue. All 17 employees have been made redundant.

Insights

• Tim Symes and Aleks Valkov of Stewarts explain why generative AI will profoundly impact the work of insolvency professionals and potentially level the playing field across estates regardless of funds available or the complexity or volume of documents.
• Julian Turner, Vanessa Whitman, Kushal Gandhi and Rachel Harrison of CMS share key takeaways from the ‘Legal Statement on Digital Assets and English Insolvency Law’ published by the UK Jurisdiction Taskforce, including the rules insolvency practitioners must follow when deciding whether to sell digital assets. 
• Jamie Murray-Jones, Lindsay Hingston and Katharina Crinson of Freshfields examine how the increased choice of forum for debtors, the complexity of modern restructurings and questions around international recognition of various restructuring tools are driving a clear uptick in “multi-process” restructurings.

Please note that guest content does not necessarily represent the views of the IPA.