Search Icon

IPA exclusive industry update from Insolvency Insider

IPA Insolvency Practitioner newsletter, March 2023

Contents

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

  • Cholco Limited, LJS Food Limited, Movingfeast Limited, LJS Food Chelmsford Limited, LJS Food Swindon Limited and LJS Food Worcester Limited, six entities within the Elmex Group, which held the leases for 10 sites under the El Mexicana and sister Don Churro brand, entered administration on 2 March. Joint Administrators Tim Bateson and Chris Pole of Interpath Advisory said that the group has recently had to contend with sharply rising costs, as well as challenging trading conditions in the wake of the pandemic. Immediately following their appointment, the Joint Administrators completed a pre-pack sale of the group’s business and assets to Cholco Consulting Limited, which lists the brand’s initial founder, John Coverley, as a director. 92 jobs have been saved. Tc Security Trustee Limited has a registered charge against all six entities, while Tc Loans (Cbils) Limited has a registered charge against three of the companies.
  • STR Logistics Limited, a Devon-based transport firm, entered administration on 31 January. David Kemp and Richard Hunt of SFP were appointed Joint Administrators, and said that the company’s financial troubles were caused by a combination of rising costs, a shortage of available spare parts, increased lead time for vehicles and the general downturn of the economy. Immediately following their appointment, the Joint Administrators sold the company’s business and assets to Devon & Cornwall Logistics Limited, saving 144 jobs. Paragon Commercial Finance Limited and Paragon Business Finance PLC each has a registered charge against the company.
  • Aartee Bright Bar Ltd and Aartee Bright Bar Property Ltd (collectively, “Aartee“), a West Midlands-based producer and vendor of engineering bars and a major customer of Britain’s third-biggest steel producer, Liberty Steel, entered administration on 6 February. Joint Administrators Michael Magnay and Richard Fleming of Alvarez & Marsal said that Aartee, which employs 250 people, has been facing significant headwinds as a result of the challenging economic environment and fluctuating steel prices.The Joint Administrators are currently exploring options to preserve Aartee’s value. Meanwhile, steel tycoon Sanjeev Gupta has reportedly acquired control of an indirect shareholder of Aartee and is attempting to overturn the administrations. FGI Worldwide LLC and Godfrey Nelson Knowles, Christopher Hugh Hall, Timothy Jobling and Richard Michael Moyse have registered charges against Aartee.

Insights

  • The team at Hogan Lovells summarise the Court’s recent approval of an innovative structure utilised in the administration of Sova Capital which will allow the company to achieve materially higher recoveries for its creditors than would otherwise have been possible. 
  • Robert Ferne of FRP shares what he is seeing on the ground when reviewing his clients’ wind down plans, and reveals some “easy wins” that are being missed by businesses and their compliance consultants in the drafting and annual review of their wind down plans. 
  • Gawain Moore, Ashley Armitage and Oliver Wheeler of Walker Morris discuss the sanctioning of the first creditor-led Part 26A restructuring plan, and consider whether this is an effective new tool in the aggrieved creditor’s arsenal and what it means for insolvency office holders.

To stay current on all market news and insights, make sure you subscribe to Insolvency Insider’s free weekly newsletter.

Become a Member

 

Find out about our various membership categories.

Practitioner’s Handbook

 

Purchase our award-winning Insolvency Practitioner’s Handbook.