By Michael Turner - Updated on July 22, 2021Proximity Concrete Cutting* (name changed) was a concrete cutting business with two businesses based in Auckland, and Wellington. It was a family business that had a significant history.
The decision was made to liquidate, and the directors of the company did not want to proceed with the business moving forward.
Prior to liquidation, Waterstone prepared to conduct a sale of the business. Our strategy was to sell the assets in either one single transaction (including both the Auckland and Wellington branches) or sell them individually.
Prior to liquidation, Waterstone worked with the management to compile an information memorandum/report to assist the sale process and separated the financials of the business to provide an indication of the performance for the individual branches.
Upon liquidation, Waterstone attended the premises of the Company to inform the staff of the liquidation, and sight company assets. Initially, the staff considered management and we worked with them to explore this opportunity.
While Waterstone commenced the sale process of Proximity Concrete Cutting’s assets, we continued to trade the Wellington branch with our staff in attendance, while the Auckland branch ceased trading as it was not economic to trade on.
A large portion of the equipment was old, with minimal realisable value if sold individually (for example at an auction). To deal with this issue, Waterstone opted to sell the assets in two tranches, one for each of the branches.
The sale process was ultimately successful, Waterstone was able to sell the assets of the Company in two transactions mitigating the risk associated with selling older equipment, by packaging them with the newer and higher value equipment. This sale process resulted in a significant distribution to the secured creditor and payment to staff for unpaid holiday pay and wages outstanding.