Jobs saved as Oldham company sold in pre-pack deal
A Greater Manchester surface preparation and industrial coatings contractor has been saved out of administration, saving all 20 jobs.
Andrew Knowles and Stephen Clancy, both of Kroll Advisory, were appointed joint administrators of Ferrous Protection on 25 August 2021.
The Saddleworth-based company, founded in 1987, offers a range of services to carry out anti- corrosion works on sites throughout the UK and abroad with particular emphasis on quality as well as health and safety.
This includes tank cleaning, bund sealing, tank lining, and external painting.
On appointment, the joint administrators completed a sale of the business and certain assets of the company to a third party on a pre-packaged administration basis.
The acquisition was made by FPL2021 Limited, which is now trading as Ferrous Protection having acquired the company name as part of the transaction.
Andrew Knowles said: “The pre-packaged administration has also allowed all 20 staff who were employed by the company at the date of appointment to transfer to the purchaser under TUPE and thus reducing both preferential and unsecured creditor claims in the administration.
“The transaction has also maintained continuity of the company’s customer base and supply chain, which has preserved the value of the Company’s business and assets as far as possible.
“This will also ensure that debtor recoveries are maximised.”
The joint administrators are continuing with their duties following the sale, realising assets, and distributing funds to creditors as well as investigating the financial affairs of the company as part of their statutory duties.