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 (rushPRnews) 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 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 / AH Marketing ahmarketinggroup.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

DDC Outsourcing Solutions Expand Further

London 04/19/17 · DDC Outsourcing Solutions (DDC OS) is a well-established...

Genomix Nutrition Celebrates One-Year Anniversary

Austin, TX 04/17/17 · Austin-based nutrigenomic testing company helping patients determine personalized...

Pet Product News: Bugout Keeps Ants Away

SAN FRANCISCO 04/14/17 · Simply Innovative Products Releases Bugout Pet Feeding System...

Claim £400 For The Boiler Scrappage Scheme

BRADFORD, WEST YORKSHIRE 04/05/17 · As the price of energy has hit an...

Bugout Pet Feeding System Keeps Unwanted Ants at Bay

SAN FRANCISCO 04/03/17 · No Mister Ant, You Can't Come to Dinner! Simply...

Charges Announced in Massive Cyber Intrusion Case

Washington, DC 03/15/17 · Two of the Perpetrators Believed to be Russian...

Roc Nation Announces New Start Up Platform, ARRIVE

SAN FRANCISCO 03/08/17 · Roc Nation, a full-service entertainment company founded by...

How to Become a Real Estate Guru

SANTA CRUZ 03/07/17 · Many people often consider investing their finances into...

Worldwide Online Research Project Invites Volunteers to Explore their own Minds

PALO ALTO, CA 03/06/17 · A largely student-led online psychological  investigation called the...

Women, Violent Extremism and the Internet: Empowering Prevention; Dealing with Risk

Ottawa, ON. Canada 03/01/17 · Women, Violent extremism and the Internet: Empowering Prevention...

Twisted Tales Cosmetics | A Daring New Twist on Matte Lipsticks

Vancouver, BC 02/26/17 · Women will be inspired to celebrate their womanhood...

Jennifer Aniston, Matt Damon, Meryl Streep and Many More Announced as Oscars Presenters

Hollywood, California 02/26/17 · Jennifer Aniston, Jason Bateman, Warren Beatty, Sofia Boutella,...

Newborn Foundation Named 2017 Community Impact Award Finalist


Saint Paul, MN 02/23/17 · Winners will be announced at the gala on...

Five Top Tips To Reduce Your Energy Bills

Bradford, Yorkshire, UK 02/22/17 · Here’s Some Great Energy Saving Tips That Work Are...