Self-funding Administration of care homes

Quantuma achieve the self-funding Administration of two residential care homes and a charity shop.

Background:

  • Senior secured debt, c.£2.5m
  • Subordinate secured debt, c.£1.5m
  • A registered charity which owned and managed two 30-bed residential care homes and a charity shop
  • Insolvency was precipitated by losses in the charity shop and excessive central overheads

Outcomes:

  • Quantuma closed the charity shop and head office, transferring core administrative functions to redundant space in one of the homes
  • Because Quantuma re-established a profitable trade the Administration became self-funding
  • 30 jobs were saved and all care home residents were able to remain in their home
  • An 18-month track record of profitability resulted in the sale of the homes for c.150% of their value on appointment
  • The senior lender was paid in full. The subordinate lender recovered c.75% of its debt.
  • A dividend was paid to unsecured creditors

 

For more information about Administrations, please click here