Our previous News item notified you that Austin Fraser Limited had been placed into Administration on 8.9.2023. Since then, the Administrators have released their first interim report dated 6.10.2023.
It has now been confirmed that the business and assets of Austin Fraser Lid were sold under a Pre-Pack process immediately upon the appointment of the joint Administrators to Meraki PSR Limited, a Company incorporated on 30.6.2023, which subsequently changed its name on 7.9.2023 to Austin Fraser International Limited. and to T20 Midco Limited, a Company incorporated on 15.8.2023.
The purchase of Austin Fraser Limited included the German-based Austin Fraser GMBH and the American-based Austin Fraser Inc. The sale price was £2.5M, which included Book Debts of Austin Fraser Limited of £1.39M. (actual book value £1.55M)
IGF Business Credit Limited were the only Secured Creditor subject to Charges registered. Who Provided Factoring Facilities and working capital to Austin Fraser Limited prior to the Administration, have been paid £2M in full and final settlement of those charges. All Staff of Austin Fraser Limited were transferred over to the new Company under the current TUPE Transfer of Undertakings (Protection of Employment) Regulations.
The joint Administrators have stated that it is highly unlikely that there will be any distributions to the unsecured Creditors, which are shown to be approx. £2.5M against an overall deficit of £6.7M. Joint Administrators Fees, including legal costs, are showing as approx. £400K.
It was noted in the Administrators report that although the Director of Austin Fraser Limited Peter Hart was not mentioned as a shareholder of the Purchaser, it was mentioned in subsequent discussions that Mr Hart will shortly hold an equity stake in the new setup. The Administrators considered this a connected party transaction and appointed an independent evaluator to investigate this. The evaluator concluded that he was satisfied that the consideration to be provided for the relevant assets and the grounds for substantial disposal were reasonable in the circumstances.
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