Overview:
Exigen was appointed to oversee the Administration of associated lighting companies Luxx Light Technology (UK) Limited and Ledtec UK Limited, both based near Cambridge. The businesses, which had entered into Company Voluntary Arrangements (CVAs) in April 2018, were unable to maintain the terms of their agreements following a period of poor trading.
Financial Challenges:
Both companies had intended to make contributions under their respective CVAs over a 36-month period. However, by November 2018, ongoing trading difficulties meant they could no longer meet their obligations. After seeking professional advice, the Directors decided to place both companies into Administration to enable a rescue.
Simon Plant, Director of Exigen Group, commented:
“Although both companies had entered into CVAs, it became clear that they were not sustainable in the long term. CVAs can be effective in certain circumstances, but statistically, many do fail. It’s vital that directors consider whether this route is truly appropriate for their business. In this case, we were able to achieve a positive outcome through Administration, with the majority of employees’ jobs preserved.”
Outcome:
Following Exigen’s appointment, the Joint Administrators marketed the business and assets of both companies for sale. After one necessary redundancy for operational reasons, a successful offer was received from LED Luxx UK Limited. The sale ensured the continuation of trading operations and safeguarded the majority of roles within the businesses.