The most recent high profile administration appointment happened just two days ago (Tuesday 19th August).
The appointment was in relation to the Fergusons Shipbuilding Company based on the River Clyde. The business is the last of the Clyde Shipbuilders and the appointment is not only a real blow to the Scottish shipbuilding industry, but it also personally affects more than 70 individuals who now face huge uncertainties over their future employment.
The shipbuilding history of Fergusons is more than a century old. Like any business however, it has faced significant cash flow pressures brought about by the current economic climate, and its longer term orders pipeline is, to use the phrase of the newly appointed Administrators, lacking in “significant orders”.
It will come as no comfort to the individuals affected, and their family members, that the effects of insolvency are a daily basis for our business. We would be happy to discuss the procedure of administration and what might happen next with any of those affected.
It is also however a useful example to highlight that business must get advice early in respect of potential insolvency events. The catalyst for the appointment here appears to have been a business review that suggested the future of the business was either not as viable as the directors would have hoped, or that review concluded the longer term viability of the business was in serious doubt.
The latest on the news (Thursday 21 August) is that a deadline of 5.00pm has been set by the Administrators for interested parties looking to buy out the business. We very much hope that a purchaser can be found and that deal completed to allow for the business to be rescued in some form, giving certainty to all of those affected.
If you think your business may be affected by similar issues, then please contact me to discuss matters.
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The information and opinions contained in this blog are for information only. They are not intended to constitute advice and should not be relied upon or considered as a replacement for advice. Before acting on any of the information contained in this blog, please seek specific advice from Gilson Gray.