Accountant RSM Tenon has entered administration as Baker Tilly is soon to acquire the firm's trading entitites (release)
Given the scale of its debt the firm has had little choice but to declare itself insolvent, with three insolvency practitioners at Deloitte LLP appointed as joint administrators to the firm this morning.
Immediately following their appointment, the Joint Administrators agreed a sale of the Company's trading entities to Baker Tilly. The sale is expected to complete within two weeks, following regulatory and shareholder approval.
The Company announced on 16 August 2013 that it was likely that, as a consequence of the Company's high debt level, if an offer was made by Baker Tilly, minimal value, if any, would be attributed to the issued share capital of the Company.
The sale agreed by the Joint Administrators will realise no value for the ordinary shares of the Company. At 31 December 2012, the Company had net borrowings of £80.4 million. The terms of the sale agreement mean that Lloyds will not recover its secured debt in full.