Creditors set to miss out on packaging firm pre-pack
The creditors of Fusion Flexibles and Mercury Packaging look set to miss out after the companies were sold in a pre-pack deal earlier this month.
Some 130 jobs were saved after the two packaging businesses were sold to Reflex Group after administrators from FRP Advisory were called in to the firm in late October.
Although secured and preferential creditors looks set to be paid in full, cash owed to unsecured creditors totalled nearly £3.7m, with administrators saying that just £54,000 will be made available to them.
The big losers will be the likes of HMRC, which was owed £394,111, while documents seen by TheBusinessDesk.com say Funding Circle was owed £171,000 when the companies were sold. Other big losers include Plastribution of Ashby, which was owed over £370,000.
Fusion, formerly known as CPS Packaging Limited, was incorporated in 1976 and manufactures plain and printed flexible packaging materials, supplying the food, publishing, retail, security and medical industries. In 2017, Fusion integrated the business and assets of Mercury, a printing, conversion and lamination company that is no longer trading.
The business experienced cashflow pressures in recent months and, after exploring its options, pursued an accelerated sale process, which has resulted in the pre-pack sale.
