KPMG ADMINISTRATORS have received a second extension on the collapse of aircraft parts manufacturer Aero Inventory UK.
Jim Tucker, Richard Heis and Allan Graham, partners at KPMG, were appointed joint administrators to Aero in November 2009.
Usually, administrators are given 12 months to either sell the business as a going concern, break it up and sell it in parts, or enter the business into liquidation. However, the KPMG administrators announced in November 2010 they had requested a two-year extension to November 2012.
Accountancy Age has seen documents, filed at Companies House, approving another extension to the administration period for a further two years, to November 2014.
The AIM-listed company suspended shares in October 2009 following reported problems with inventory levels in accounts for both 2008 and 2009.
Aero Inventory subsequently collapsed and, in March 2011, the Financial Reporting Council’s disciplinary arm started an investigation into the auditors of the business.
Since its collapse, the administrators have found ways to keep the business trading. In March last year they agreed a deal to relaunch the company and transferred stock to a new distribution centre.
The administrators plan to continue trading by building customers relationships and last year created an online business, aeroinv.com, to increase returns to creditors.
The fast-track move is a bold departure from the norm, as a probe would normally only begin several months after administrators had finished their own enquiries
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