IPA exclusive industry update from Insolvency Insider
IPA Insolvency Practitioner newsletter, December 2023
A specially curated selection of the top stories for IPA members from Insolvency Insider Editor, Henry Louis. More information on all the stories and the link to subscribe to the newsletter is here.
Recent insolvencies
Real Good Food PLC (AIM:RGF), a Liverpool-based specialist bakery goods manufacturer, has filed a notice of intention to appoint Richard Harrison and Will Wright of Interpath Advisory as joint administrators. In a recent announcement, the company noted that performance has been constrained by supply issues and cash constraints and that sales for November and December are expected to be lower than previously forecast. This led the board to conclude that it is in the best interests of all stakeholders to explore strategic options for the company’s remaining business, JF Renshaw, which has also appointed Interpath Advisory as its adviser to review strategic options. The company also announced that it has temporarily suspended trading in its shares on AIM. A number of parties, including Lloyds Bank, Huk 122 Limited, Leumi Abl Limited, Omnicane Limited, Downing LLP, Napier Brown Holdings Limited have registered charges against the company.
Milton Portfolio Op Co 3 Limited, which operates a portfolio of 25 Wear Inns pubs across the north east and Yorkshire, entered administration on 13 November. Ryan Grant and Howard Smith of Interpath Advisory were appointed joint administrators, and also as LPA receivers over the 25 properties, which are owned by Milton Portfolio Property 3 Limited. They are continuing to trade all 25 sites while they look for a buyer, and have retained all of the company’s 264 employees. Metro Bank PLC has registered charges against the company.
Morses Club Limited, a Nottingham-based subprime lender, and its sister company Shelby Finance Limited, which provides loans online under the Dot Dot Loans brand, entered administration on 17 November. Ed Boyle and Rob Spence of Interpath Advisory were appointed joint administrators. The companies have recently faced financial pressures including customer claims brought against Morses Club for unaffordable lending. In May, Morses Club entered into a scheme of arrangement to provide redress payments to customers and to allow the business to continue to operate, but the firm has reportedly been unable to refinance its existing debt. The appointment of administrators has resulted in the automatic termination of the scheme. 272 staff across the two companies have been retained while the joint administrators assess options, while over 100 staff have been made redundant. Hay Wain Group Limited has registered charges against both of the companies.
Insights
Peter Manley, Tom Hitchcock and Filip Badina of DLA Piper share a moratorium success story, examining a recent High Court decision which provides insight into the exercise of the courts’ discretion in circumstances where a company subject to a winding-up petition wishes to avail itself of the protection of the moratorium process.
Cyrus Pocha, Noah Schmidt and Christopher Bernard of Freshfields summarise how the UK government plans to regulate crypto assets going forward, including the proposed treatment of crypto firm failures and rumblings of a new special administration regime.
With levels of distressed debt and corporate bankruptcies on the rise, Paulette Mastin, Kathleen Garrett, Aaron Javian and Jason Angelo of Reed Smith revisit the interesting intersection of English law distressed debt, US bankruptcy and the century-old Rule in Gibbs in the context of cross-border restructurings.
Please note that guest content does not necessarily represent the views of the IPA.