The jobs of the remaining 165 employees at Granville Technology, the company
behind Tiny Computers, have been secured for the time being after administrators
Grant Thornton won a case in the Court of Appeal.
The application was made by Grant Thornton adminstrators to reverse the
judgement of the Krasner vz McMath case, which found that protective awards and
payments in lieu of notice received ‘super priority’ under the Insolvency Act.
As a result, such liabilities would rank ahead of all other payments in an
administration, including not only the administrator’s expenses, but the claims
of preferential creditors (including other employee claims).
In turn, the effect of Krasner made it more likely that administrators would
‘play it safe’ and terminate employment contracts within the first 14 days of
But Mr Justice Etherton decided to reverse the Krasner decision.
Grant Thornton’s lawyers, Lovells, said that the judge’s decision restored
the position as understood before Krasner, and ensured that the ‘rescue culture’
was not frustrated by these employment liabilities attracting ‘super priority’.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children