The companies were all dormant and whilst some had no assets, others were owed money by Group companies. The Group’s internal finance function had tidied up the structure and inter-company indebtedness to facilitate solvent liquidation and distribution in specie using Deeds of Assignment and Distribution. Steps were taken to ensure that there were common directors appointed to these companies to facilitate the winding up and passing of resolutions.
The Group provided up-to-date positions on the assets and liabilities of the companies in Project Space. The TBDA team worked with specialist Insolvency solicitors to develop the strategy and documentation required. TBDA quoted a competitive price to deal with all the MVL as a group project.
Following the agreement of the strategy and price for the Project, all the documentation was prepared which included written resolutions that had been provided to the directors and shareholder companies. All the companies were wound up on the same day with Bev Budsworth appointed as Liquidator.
APPROVED MEMBERS VOLUNTARY LIQUIDATION SOLUTION
The Project was complex but TBDA team ensured that the project was conducted to the highest standard of compliance, ensuring that relevant book debts were assigned to the corresponding Shareholder, as a ‘distribution in specie’. The relevant clearance was obtained from HMRC and the liquidations have concluded.
Careful consideration must be given to all options available to a financially distressed business.
