Northshore creditors meeting

Tranona said:
Don't think there is any "accounting trick". There is more to this than meets the eye. This is a shareholder liquidation, not forced on it by creditors. It seems clear that somebody has taken the decision that given the current finances of the company it is not able to trade out of its current difficulties and return to profitability. On the other hand there is probably a viable business in there with a different structure and possibly owners. Whether there is enough willingness on the part of suppliers, employees and providers of finance to make this happen we shall see.
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Tranona, it was being advertised as a creditors' voluntary winding up - at last those were the sections of the Insolvency Act referred to in the London Gazette notice. See my post #176 in the other thread here
http://www.ybw.com/forums/showthread.php?356832-Northshore-in-trouble&p=4149845#post4149845

So that means (at least at the time they called the creditors' meeting) the company was of the view it couldn't pay it's debts. Or, in the vernacular, it was bust.
 
jbweston said:
Tranona, it was being advertised as a creditors' voluntary winding up - at last those were the sections of the Insolvency Act referred to in the London Gazette notice. See my post #176 in the other thread here
http://www.ybw.com/forums/showthread.php?356832-Northshore-in-trouble&p=4149845#post4149845

So that means (at least at the time they called the creditors' meeting) the company was of the view it couldn't pay it's debts. Or, in the vernacular, it was bust.
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Yes, but it is not the classic case of one creditor or a bank calling the shots. It is the directors/shareholders deciding that they can't see a way out - but having put in train a strategy to minimise the damage to the brand. That is the property and other key assets plus the intellectual property related to the boats are not owned by the company that is being liquidated.
 
Tranona, I was just pointing out it isn't a members' voluntary (as you said in your post) but a creditors' voluntary and that means the directors think the company can't pay its debts. I appreciate that the directors may have decided they should jump (into liquidation) before they were pushed into it by one or more creditors.

Possibly the technicalities are only of interest to company law nerds - the practical implication is that this isn't some voluntary reorganization of a solvent company (members' voluntary) but a case of inability to pay debts.
 
It is sad for British boat building. But Southerly have had the wrong attitude for years despite making good boats. They need to replace the top dogs with sailors not motorboaters...
 
I'm quite excited to see the GT35 at SIBS this year...Mr Jones draws great boats from what I've seen so far and he wouldn't get involved in a project that wasnt going somewhere. I think the GT range will appeal to those who want a mini Oyster - quality but not the quantity of boat length... and they won't have to compete with Southerly 36/38s this year
 
rogerball0 said:
Always wondered how they stayed in business - i presume like Sunseekers - alot were built for export looking at the eye-watering price tag.
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Re lift keel boats, the highly regarded Ovni had the approach, ' let's make a strong lifting rudder blade '.

Southerly decided ' as the thing dries out, let's take the easy option and fit a tiny rudder which will turn any real sailor right off in an instant '...:rolleyes:
 
It does seem difficult for a company, once failed, to make a sustainable comeback. Maybe something to do with the reluctance of buyers to put large sums at risk with a company that has failed once. Maybe also because suppliers run very tight credit controls on companies that have bitten them before, and materials will dry up if bills aren't paid up front or within a few days. Maybe also because suppliers' prices are higher second time around, because they are trying to recoup some of the money they lost in the first failure.
 
' The first failure ' being a total rip and disaster for suppliers is the impression I got; I'm surprised they dealt with this lot again, but I suppose UK boatbuilders are sadly so scarce they had to.

Unlike boat buyers, who wisely voted with their wallets; are there any people who have ordered a boat and are now left in the lurch wondering where their money has gone ?
 
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