Clarencare Limited had been faced with a winding up petition from HM Revenue & Customs (HMRC) over unpaid tax bills. However, insolvency practitioners Begbies Traynor have now sold the company out of liquidation to Brown Edge House Limited.
HMRC have agreed not to proceed with the winding up petition and the application is to be dismissed in the Companies Court. HMRC are reportedly not contesting the dismissal of the application thus allowing the sale of the business to go ahead.
A spokesperson from Begbies Traynor said:
“Our initial attempts were to secure a company voluntary arrangement or place the company into administration, but given the tight timescale and the financial constraints placed on the business by the presence of the winding up petition, we were left with no alternative than to pursue a creditors’ voluntary liquidation”.
Fortunately, Brown Edge House Limited were able to buy the business out of liquidation and save the care home from immediate closure. This case is a good example to other businesses facing winding up petitions and demonstrates that even when faced with a HMRC winding up petition there are options to rescue companies.