Splitting profitable and non-profitable businesses : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

Splitting profitable and non-profitable businesses

March 6, 2013

Splitting profitable and non-profitable businesses

Leeds, UK (RPRN) 03/06/13 — The client’s original situation

National business rescue and insolvency practice Chamberlain & Co were recently successful in assisting the directors of a coach servicing company to extricate themselves from their loss-making business, along with a profitable MOT and servicing garage that co-existed within the same company. The coach service was making losses due to a slump in bookings, losses of some contracts, and rising operating costs. Meanwhile, the MOT and servicing garage had established a niche in catering for larger vehicles, and had opportunities for profitable expansion.

However, the losses incurred by the coach business were so large that the company had become insolvent and needed to be placed into a formal procedure.

As the directors considered the MOT and servicing business to be capable of operating viably, the directors wished to salvage it while closing down the coach business, and they also wished to retain the freehold and leasehold operating sites.

The rescue strategy

Under the advice of Chamberlain & Co, the directors established a new company which purchased the business and assets of the MOT and service division for fair value and got the MOT licence transferred. They then sold the recurring coach contracts. These transactions were conducted pre-insolvency with the benefit of appropriate legal and valuation advice in order to protect the position of the directors and the value of the assets.

If either of these sales had not been conducted until after a formal insolvency appointment, there would have been a significant risk that neither transaction could have been completed, resulting in a significant loss of value to the creditors.

Following this, the company was placed into administration. The coaches and other surplus assets being sold, and the freehold and leasehold land and buildings were leased. A CVA was then approved to distribute the realisations amongst the unsecured creditors to leave a solvent property company to hand back to the directors.

Outcome

The directors had the opportunity to establish a profitable MOT and Servicing garage to rent space from their solvent property company. The loss-making coach business was successfully exited. This outcome was satisfactory to all parties involved and was made possible by the knowledge and expert guidance of Chamberlain & Co.

Media Contact Name: Dean Spencer
Media E-mail:
Media Phone: 01332 253840
Media Web Address: http://www.grapevine-group.co.uk
Company Contact Name: Michael Chamberlain
Company Web Address: http://www.chamberlain-co.co.uk
Click here to see all news from this author/company

Filed Under: BREAKING NEWS, BUSINESS NEWS, PRESS RELEASE, United Kingdom

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Cody Bollerman Digital Poised To Shake Things Up In The Business Consulting And Digital Marketing Sectors

San Diego,Calif. 10/24/14 · SAN DIEGO-BASED CODY BOLLERMAN DIGITAL POISED TO SHAKE THINGS UP...

UK’s first night job site launches

London, UK 10/24/14 · Night jobs search service launched in the United...

Bloody Good Tv Runs $10,000 Horror Movie Watching Contest On PublicVine

Florence, Alabama 10/24/14 · This Halloween, consumers can register to win up...

Ultraseal International aiming for hat-trick

Coventry, West Midlands 10/23/14 · Ultraseal International, a global leader in finding solutions...

Newborn Foundation Co-Convenes Shanghai Symposium with Focus on Congenital Heart Disease in Newborns and Infants

Saint Paul, MN / Shanghai, China 10/20/14 · Expansion of Newborn Screening Program & Latest Data...

Ste. Anne's New Fitness Centre In An Idyllic Setting

GRAFTON, ONTARIO 10/17/14 · -Maison Sante is just one part of Ste. Anne's...

Newborn Foundation Honors Leaders in Newborn Health, Technology, Policy and Advocacy at 2014 Awards Gala

Minneapolis, MN 10/13/14 · – The Newborn Foundation, an international nonprofit leveraging...

Phaedra Beauty Cosmetics Re-Launches with New Packaging

Los Angeles, CA 10/13/14 · Hollywood celebrity make-up artist Phaedra L. Williams introduces...

Indie Film, The Ballad of Snake Oil Sam 2014 Global Film Festival Tour

Los Angeles, CA 10/13/14 · Indie Film, The Ballad of Snake Oil Sam...

Newborn Health & Technology Leader Dr. Terese Finitzo Receives ‘Eve Award’ for Innovation

MINNEAPOLIS, MN 10/10/14 · Newborn Foundation Awards Gala honors global leaders in...

Ste. Anne’s Spa: An Ideal Setting For Meeting And Team Building

Grafton, ON 10/08/14 · Ste. Anne’s Spa provides an ideal meeting environment,...

Renew Life Launches National TV Advertising Campaign with the help of Creative Bube Tube

Milton, ON 10/06/14 ·  - Renew Life proudly announces their latest marketing...