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13 Aug 2009
More than 75% of jobs at Haymills, the troubled property refurbishment company have been saved through a pre-packaged adminstration sale.
Politicians claim pre-packs disadvantage trade creditors by finding a buyer in secret and shedding company debts but the insolvency community consider it an invaluable tool as access to keep businesses trading remains hard to secure.
433 of the company's 559 employees still have jobs after insolvency experts from PricewaterhouseCoopers hammered out the deal.
Stephen Oldfield, Matthew Hammond and Colin Haig of PricewaterhouseCoopers LLP were appointed as joint administrators of Haymills Group Limited today alongside the company being sold to VINCI Construction UK Limited,a global concession and construction group.
Oldfield said: 'We are very pleased to announce the sale of the majority of the Haymills group to VINCI Construction UK Limited.
'The last few days have seen an intensive period of activity as we worked with the group to explore the options available to them.
'We feel that this represents the best outcome for the business and will ensure the Haymills brand continues to exist and provide this well known East Anglian business with a more secure future.
Haymills was facing severe difficulties because of financial obligations and losses in its Gibraltar subsidiary. A deal with a potential purchaser could not be concluded in time, which led to an urgent search for another buyer. The claim from Gibraltar rendered the UK group insolvent which left no alternative but to conclude a sale out of administration.
'This is a prime example of when a pre-pack sale can be the best option,' added Oldfield. 'In this case, as this is a contracting company, any attempt to sell this type of business after an administration appointment is fraught with legal and operational difficulties which would have likely caused the business to collapse.'
Further reading:
IPs hit back after MPs' pre-pack slurs
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