Creditor windfall after 8 years thanks to Portland persistence

South coast based Portland Business Recovery are pleased to report that they have successfully restored ACW Technology Limited to the register and distributed further funds to the creditors.

A refund of historical bank charges resulted in £30k being due to the company years after it had been dissolved, following the reinstatement of the company further funds were paid to creditors, who had already received £620k from the liquidation some three years previous.

ACW Technology Limited was originally placed into administration in 2012.  Following a successful business sale and distribution to creditors in the subsequent liquidation the company was dissolved in 2017. Prior to administration, ACW Technology Limited was the UK subsidiary of the global business ACW International Limited, which was founded in the UK by the majority shareholder and founder Christopher Woods. The group specialised in the manufacturing of electronics. Following a surge in demand, the company set up operations in the Far East in order to offer more cost-effective products to their European client base. A facility was also opened in the USA in 2010 to service customers in North and South America to maximize business growth.

nicola layland press

The business experienced considerable financial success spanning many years thanks to organic growth and acquisition. The success reduced in the latter years due to strong global competition depressing margins, increased lead times, the unavailability of component parts at critical times and the failure of suppliers to deliver to agreed timeframes coupled with extensive delays induced by some customers. This in-turn placed considerable strain on production planning and shipping, with additional costs being incurred. This ultimately led to heavy losses and, despite cutting costs with staff cuts and the closure of global facilities, eventually a decision was made to place the company into administration, the successful sale of the business lead to a significant return to the creditors.

Director of Portland Nicola Layland commented:

“This is a slightly unusual scenario. Once a company is wound up it is quite rare for surplus funds to become available at a later date, which in this case were not anticipated previously. Once we were aware of the additional funds, we submitted an application to court for the company to be restored to the register. We are now able to complete the winding-up of the affairs of this company and are pleased that the team at Portland were able to act quickly and effectively in order distribute these surplus funds to creditors.”

It is always worthwhile reviewing historical loans and agreements with banks where significant charges have been paid, to review if there are any refunds due.