Pre-pack saves Haymills, PwC says

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:

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MPs
demand more transparency for pre-packs