Evesham Go into Liquidation

[pumpman]

Actually, no, it's rather more complex than that.

Liquidation is a process whereby the intent is to sell off assets, pay of creditors and shut the company down. There's essentially three types: creditors voluntary, member's voluntary and compulsory. In the middle (member's) case, the company is solvent and may well be viable, but the owners have decided to pay off creditors, sell the assets, distribute the remainder and cease trading. It's a vehicle for a shut-down, perhaps because the owners are retiring, or moving abroad, or just doing something else.

Rather different to that are creditor's voluntary and compulsory liquidations. The compulsory liquidation comes directly from a court winding up order, issued because a company either can't or won't pay debts, by which I mean either statutory demands (tax bills, etc) or if a court judgement over a debt remains unsatisfied (and is more than £750), and is issued because the court is satisfied the company is insolvent. The Official Receiver oversees the winding up.

Then there's creditors voluntary. In that case, again the initiative comes from directors and shareholders, and it happens because they believe the company is insolvent. It would, of course, be illegal to trade knowing that. So, the company prepares a report, calls a creditors meeting and tries to get creditors to agree to the appointment of a liquidator, which will be an insolvency practitioner, like an accountant, not the Official Receiver.

That's liquidation.

Then there's administrative receivership, which to be honest, is going out of fashion. This is someone appointed by a major creditor (as a result of the power contained in a debenture) as a result of payment default on that debenture. The administrative receiver (who is often sloppily referred to as an administrator) takes over the company and runs in in the interests of the debenture holder who appointed him. Again, it's an insolvency practitioner, not the Official Receiver, and the object of the ad-receiver's work is to get the debenture repaid. If it is, then once satisfied, control goes back to the directors and shareholders, who can then resume normal operations, subject to the company still being solvent, of course.

And then there's "administration", which is not the same as an administrative receivership.

The primary purpose of administration is protection from creditors, while attempts are made to restructure and revive the company, and the overt objective is company survival. Whilst a company is in administration, creditors can't do much. But, and it's a fairly significant but, any debenture holder with the power to appoint an administrative receiver must be notified of the application for administration and can step in and appoint an administrative receiver first. So you need their agreement to go down the administration route. Then, and providing you can satisfy the court, the administration order is granted by the court. This is unlike the administrative receivership which is the debenture holders option and serving their interests, and unlike creditor's voluntary liquidation, where though both creditor's voluntary liquidation and administration are initiated by the company, the former is with a view to liquidation and the latter is explicitly to protect the company from creditor's action, perhaps while a CVA (basically, a debt restructuring program) is organised.

If a company continues to trade while insolvent, the directors may find themselves subject to legal action as a result. If, however, they can put together a proposal that shows a realistic way to get the company out of trouble, meeting debts and still end up trading, then the court will probably agree the administration. Prior to that, a single creditor, and often for fairly small amounts of money, could commence a process that was essentially like pulling out a bottom card from a house of cards, with the result that the whole edifice collapsed .... and often entirely unnecessarily. Administration provides a breathing space, where the court protects the company by preventing creditor actions (and freezing existing ones) while the "restructuring" takes place.

Administration is broadly similar in scope and objective to the US Chapter 11 bankruptcy protection. It's designed to prevent companies that could be saved being taken down by what may well be short-sighted and self-interested action by creditors provided realistic scope for getting out of the mess exists.


Anyone still awake out there?

Helloooo?

I did simplify it a wee bit but you get the gist

[Saracen]

I did simplify it a wee bit but you get the gist

Yeah, I do go on a bit sometimes.

But I regularly see the roles not just simplified, but totally mixed up, and by people that really ought to know better ..... like the business press, and even MPs.

[Deadlight]

I was told yesterday that they've gone down the drain. The problem is a) my desktop-replacing laptop, bought from them, is there being repaired under warrantry, b) I've been paying for this buy credit for this for the past two months!

Argh! What now?

[Lucio]

Your best bet is to check with Citizens Advice, I *believe* that because the item is faulty within the early stages of ownership (as implied by the "last 2 months on credit statement") and because it is being purchased under a credit agreement that is likely regulated by the 1974 Consumer Credit Act, you can seek recompense from the credit agency for any faults.

[Deadlight]

Oh, thanks for that mate, I'll look into that.

[Bhavv]

Are mesh and carrera SSC still around? Ive not looked at these companies since I started self building because I got the worst built PC imaginable from carrera.

[Tumble]

I used to live in Evesham, and I remember when the company started up, next to the arcade on Bridge Street... tiny tiny little shop it was then

[=assassin=]

Wow, I've only just noticed this thread. Unexpected :/ What a shame.

I used to live not far from Evesham, I remember my mate used to get his PC stuff from there (this is going back over 10 years ago).

[Zak33]

Yeah, I do go on a bit sometimes.

He GoeS oN liKe I uSE CapiTaL lEttERs tOO muCH

S75......is supposed to help, and eventually it would...but MAN you gotta be patient. SO no one should rely upon it if the'yre strapped for cash when buying.