The successful CVL of Superchips Limited, with a dividend to preferential and unsecured creditors.
The challenge
Superchips was a market-leading car-tuning business which had been trading since 1977. Due to the pandemic, the company struggled to remain profitable, turnover dramatically decreased and the company was forced to cease trading, with liabilities of around £298k.
The solution
As many of the employees had worked for the company for a long time, staff claims were significant and in addition, further liabilities were owed to general suppliers and to HMRC. It was acknowledged early in the advice process that the company was a market leader in supplying aftermarket chipping and remapping solutions for vehicles, and that its assets were potentially of significant value.
Our experts immediately identified all the available assets, which included stock, debtors, plant and equipment, as well as a rolling road which had been installed in the trading premises. They swiftly instructed agents who provided valuations of the assets, which allowed our experts to have a more accurate understanding of the company’s financial position.
To achieve the best outcome for all, specifically for the creditors, the strategy was discussed and agreed between the directors, the company’s accountant and Quantuma. During the discussions, we were able to reassure the directors, and paid close attention to their worries and concerns. We advised on their statutory obligations to make the decision process as stress-free for them as possible. It was agreed that the best option would be to place the company into a CVL.
The outcome
Through a collaborative approach and with the hard work and assistance of the agents and directors, it was possible to market the business and assets of the company prior to the CVL. This resulted in over 30 expressions of interest in purchasing the assets. The business and assets were quickly sold to a third party for significantly more than the break-up valuation provided by agents. This means that preferential creditors will be paid in full and all unsecured creditors will receive a dividend from the liquidation in the near future. Good communication from the outset and a solid understanding of the needs of all parties involved was pivotal in securing this positive outcome.
