On Christmas Eve, Resurge agreed to provide the Moorgate Paper company with £500,000 worth of financing for its £2.6m acquisition of Clarence Paper Sales Limited, a company which went into receivership last November.
Moorgate obtained the further £2.1m from traditional sources of financing. The money borrowed from Resurge is fully repayable within six months with interest of up to 25%.
The deal is backed by 51% of Moorgate’s share capital and a personal guarantee from Neville Simpson, the owner and only other shareholder of the company.
Under the deal, Moorgate acquired the trade debtors of Clarence Paper, estimated at about £2m, as well as the goodwill, plant, equipment, stock and freehold premises.
Clarence was a wholly-owned subsidiary of Capital Paper Holdings and made pre-tax profits of £1.07m in the financial year to May 31, 2001.
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