Sale of under-administration Fairpoint subsidiaries going ahead
Chorley-based IVA specialist Debt Free Direct – a subsidiary of the under-administration AIM-listed company Fairpoint Group – has itself now been sold out of administration for almost £1.35m.
Sandy Kinninmonth, Lindsey Cooper and Chris Ratten from RSM Restructuring Advisory were appointed joint administrators on Friday (September 1).
The Adlington company is an Individual Voluntary Arrangement (IVA) business with assets of nearly £37.5m that delivers debt solutions for individuals across the UK and employs 72 people and is part of Fairpoint which went into administration on August 10.
The business and certain assets of DFD have been sold to Aperture Debt Solutions, based in Belfast. All employees will transfer to the new owner with immediate effect.
RSM’s corporate finance team, led by partner James Wild with support from Nick Wyatt, acted alongside Joint Administrators on the sale.
Cooper said: “The successful sale of Debt Free Direct will ensure the continuity of service for customers and staff, whilst mitigating the position of key creditors.”
Meanwhile, consumer professional services company Fairpoint, has also announced the conditional sale of the entire issued share capital of its wholly-owned subsidiary, IVA Insurance, to Barkol.
The sale will be overseen by RSM and will complete on confirmation of the purchaser’s regulatory authorisation.
IVA Insurance is a reinsurance captive specialising in consumer claims. It had gross assets of £624, 879 on December 31, 2016.
The consideration comprises a cash payment of £450,001, with an additional amount equivalent to cash balances held by the company being payable on completion. The consideration will form part of the proceeds available for distribution by the joint administrators to the creditors of group.
