Fifty jobs have been saved at an ailing engineering business thanks to a deal completed by leading law firm Aaron & Partners LLP.
Senior partner Simon Edwards (pictured) secured the posts after being appointed administrator for companies in a Yorkshire based engineering group the Ardeth Group, which had run into financial difficulties and were already in Company Voluntary Arrangements.
Simon sold the businesses and assets of the group, including those of Northern Plastics Ltd, Ardeth Engineering Ltd, Gage Engineering Ltd and Ardeth Group Ltd to the Runcorn-based Engenda Group.
The proceeds from the sale should enable a dividend to be paid to unsecured creditors, and the Engenda Group will add its financial strength and keep the long-established business and jobs based in Elland, Leeds.
Simon Edwards said: “Aaron & Partners has considerable expertise in this field.
“We were brought in as administrators and secured a quick and effective sale of the business and assets to the Engenda Group at a good price. Using a strategy called a ‘pre-pack’ gave us the chance to save the business when the companies weren’t able to keep trading.
“We were able to use our considerable experience in these matters to help structure a deal to get the best outcome for everyone involved, particularly the 51 employees whose jobs have all been saved. Unsecured creditors should also receive a dividend in due course.
“This is the latest of a number of recent deals we have successfully concluded.”
Aaron & Partners Insolvency team is headed by Simon Edwards who, unusually, is both a solicitor and Authorised Insolvency Practitioner, taking on insolvency appointments such as liquidator, supervisor, administrator and trustee in Bankruptcy.
The company’s wider commercial team provides expert advice on how best to avoid or deal with insolvency proceedings and, where possible, to reach agreements with creditors and continue to trade.
The Engenda Group, which was formed in 2009, delivers outsourced engineering services to the power, refining, chemical, oil and gas, manufacturing and infrastructure sectors, both in the UK and overseas. Turnover in the last financial year was £26.7m - a year on year growth of nearly 50%.
Lee Foundation, Engenda Group Managing Director, said: “In these circumstances it is vital that important decisions are made quickly to safeguard jobs and customers – which the administrator was able to do.
“Customers have expressed relief that the businesses will be able to continue and are now on a firm footing. The Ardeth and Northern Plastics capabilities and workforce mean we can deliver outstanding service to our customers in the UK and abroad.
“The location in Elland midway between our facilities in Merseyside and the Humber Bank is ideal for our customers. We are confident that the quality workforce will meet forthcoming challenges and re-establish the Ardeth name as one of the most respected engineering businesses in the UK as an important part of the Engenda Group.’’
Aaron & Partners employs more than 100 people and has offices in Chester, Manchester and Shrewsbury.
The firm was recognised as Cheshire’s leading law-firm in the Legal 500 with recommendations for 17 of its legal departments, and received glowing reviews in the prestigious Chambers UK 2013 rankings.
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