Company wound up by section 122 petition

[Daviesmith]

Hi my business partner is currently trying to wind up our company (a golf course ) as we have fallen out .
If he is successful roughly how much value do I stand to lose ? .

I was thinking as everything is still there ie the golf course it wouldn't sell for a massive amount less , maybe 30% .
What do you guys think ?

 

[JeremySilva]

Are you asking how much you could expect to receive out of the winding up as a shareholder of the company?

 

[Gavin Bates]

Hi

You really need to take professional advice, (legal in the first instance) and possibly insolvency advice.

The cost of these applications can be very high and if they are successful the outcome will be very uncertain. In simple terms, the value is what somebody is prepared to pay and in current circumstances that is very uncertain.

Regards

gavin

 

[Lisa Thomas]

In what respect are you expecting to lose something?

Are you a creditor yourself or just a shareholder?

You could buy the assets/business bank off the Liquidator.

We cannot advise you on how much the assets are worth, you will nee a professional agent to do this, based on a lot more information. I can recommend one if needed, although the Liquidator will use their own.

 

[Daviesmith]

So would the liquidators auction the business and asset's ?

 

[JeremySilva]

The liquidator would look to sell the business and assets. It wouldn't necessarily be via an auction.

 

[Mr D]

Hi my business partner is currently trying to wind up our company (a golf course ) as we have fallen out .
If he is successful roughly how much value do I stand to lose ? .

I was thinking as everything is still there ie the golf course it wouldn't sell for a massive amount less , maybe 30% .
What do you guys think ?

May take a while to sell. Or be snatched up at once.

Perhaps you could buy it and set up in business on your own. Perhaps your business partner plans to buy it.

 

[Daviesmith]

But he presumably trys to get the best price ?

 

[ethical PR]

As others have mentioned you will need to take professional legal advice here, so you understand what your options are.

 

[UK Contractor Accountant]

What does the company actually own?

Sometimes the land & buildings are rented with the company just owning some plant & machinery.

In the current climate the business itself would have a reduced goodwill value, if any is held.

 

[JeremySilva]

The liquidator will try to get the best deal possible for the business/assets and is likely to engage agents to handle most assets.

The liquidator will first consider who the potential buyers are. The liquidator will incur cost in wider marketing of the business/assets if s/he thinks it worthwhile. The liquidator can't normally offer many assurances to buyers about the history/value of what they're buying so buyers may have to take a fair degree of risk (depending on the type of asset). That impacts sale values. If a business is being sold and it's been through an insolvency that's going to put people off.

Directors are often in a better position to make offers because they should have more of an idea what the assets are worth.

The liquidator will want to take the highest offer of course but will naturally prefer cash up front. If payments are to be delayed s/he'll look at the buyer's evidence of funding and any security offered.