Northshore Development

[Whitelighter]

Its one thing I have never been comfortable with.

If I buy a rolls royce, they dont want me to fund their business while they build the thing.

The only new boat I have ever bought was from stock so i paid for it and took it. Not sure if you can borrow money for stage payments so at least you have the bank behind you if it goes tits up?

 

[gerry99]

Its one thing I have never been comfortable with.

If I buy a rolls royce, they dont want me to fund their business while they build the thing.

The only new boat I have ever bought was from stock so i paid for it and took it. Not sure if you can borrow money for stage payments so at least you have the bank behind you if it goes tits up?

+1

 

[Seven Spades]

Perhaps this liquidation is taking place because the owners saw that the business was not operating profitably and wanted to call a alt before it gets too bad and that would be bad for all creditors. If there was going to be a Phoenix wouldn't they have arranged a pre-pack? This is just sad I am amazed that this has happened.

 

[Bosun Higgs]

Undertakers don't eat the body of the deceased.

They both profit from the dead. Consider shares in Dignity ( DTY), the UK's biggest undertaker and crem operator. Doing quite well with steady demand and decent margins given that few people argue over the cost of cremating Mum. Up 65% this year but now looking a bit pricey to me.

 

[Twister_Ken]

I've only had dealings with one undertaker on one occasion (fortunately) and found them to be sympathetic, good at their job, and moderately priced.

I've had dealings now with four or five insolvency practitioners when clients of mine have gone belly-up and without exception they have billed astonishing expenses and managed to leave the pot empty for unsecured creditors.

In the Northshore case, the IP has called a creditor's meeting in the Hilton Hotel, Gatwick. Granted it's not the Ritz, but that will still soak a few grand out of the assets that might have helped the company's creditors through what for most will be a very tough patch. And the IP hasn't got into his stride yet.

 

[Burnham Bob]

If anyone is going to the meeting as a creditor, some advice from someone who suffered a major loss but had documentary proof that the goods the insolvency practitioner had seized were still mine and could not be sold off as assets of the bankrupt firm. I turned up to the venue advertised at the time advised and was told the meeting had already taken place and the liquidators had left by the back door. And this was one of the big five - hardly a fly by night operation.

 

[zikzik]

I have some past experience dealing with liquidators and receivers.

The responsible officers (directors) of the company have a legal obligation to stop trading if the business they are managing is technically insolvent ( liabilities exceed assets) and seek the advice of insolvency specialists. The shareholders may or may not be directors of the company, but often are unless its a PLC.

It is more common for the companies biggest creditor, usually a bank, to create insolvency by withdrawing loan facilities. In that situation they force the insolvency and appoint receivers to act in their favour.

I know nothing about Northshore, but it would seem the bank did not force receivers. The creditors meeting should be held in a place where all known creditors can meet together, hence no portacabin.

Most of the rest written in this thread is emotional regarding the potential loss of Northshore. But the creditors should question if the law has been followed.

The nature of insolvency means the practitioners always ensure they can be paid. So they are not well loved by any side usually.

As a creditors meeting has been called, I suspect the old company is doomed. Lets see if anyone buys it to trade or strip. If that turns out to be existing shareholders / directors, that might need investigation to see if they acted in the best interest of the company prior to closing the doors.

 

[ithet]

Following the change of company name, the formal meeting of the creditors is for NSY (Southern) Limited (formerly North Shore Yachts Ltd).

So the original name is available to sell as an asset to a "new" company. It will be interesting to see who the directors and shareholders of any new "Northshore" will be.

 

[johnphilip]

That sounds highly probable. There's a reason everyone (from either side) that I know who has been involved with insolvency practitioners holds them in very low esteem.

Indeed, not only do they pay themselves proposterous rates they even make the struggling company pay for insurance to make sure there are enough funds to pay their ransom. From personal knowledge an estimate of fees from these "company recovery" types may well be exceeded by 75%. The name leeches is too good for them.

 

[tokoloshe]

Its one thing I have never been comfortable with.

If I buy a rolls royce, they dont want me to fund their business while they build the thing.

The only new boat I have ever bought was from stock so i paid for it and took it. Not sure if you can borrow money for stage payments so at least you have the bank behind you if it goes tits up?

I prefer tits down...