International Plc achieves a restructuring of its UK subsidiary businesses preserving the value of valuable long-term contracts and two businesses and the overall goodwill of the plc. Upon initial instructions detailed assessments were carried out to ascertain the possibility of turning around the UK business by negotiation with the major creditors.

Failing agreement, all areas of value in the business were evaluated and strategies for preserving maximum values were deployed. One part of the business was disposed of to another company within the group to preserve maximum value and the ongoing income stream with a value for that business determined in accordance with standard valuation formulas for businesses in this sector, final consideration to be determined and paid following negotiation with subsequently appointed administrators of the UK subsidiary.

The other business was valued and was disposed of to a connected company with full consideration being paid prior to the UK subsidiary thereafter proceeding into administration.

Details of the disposals and the enhanced values obtained prior to the UK subsidiary being placed into administration were circulated to creditors who raised no issues and acknowledged the enhanced enterprise values the disposals having been completely transparent.

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