06.11.2013

Ascendant to restructure

We can now confirm that UK based aerial lift manufacturer Ascendant Access has appointed an administrator as it looks to restructure its business.

We understand that the company built up a sizeable debt with the UK tax authorities during the recession and has been unable to negotiate a workable re-payment schedule, and that it is this that has forced the insolvency filing.

The company is 75 percent owned by UK rental group Facelift, with managing director Steve Dean holding the balance. Rumours have been circulating over the potential administration for the past two to three weeks, but the formal notice of appointment was only published yesterday, following a formal grant of an administration order on Friday.

We hope to receive further information from the current shareholders in the next day or two, but expect the company to continue as normal, once it has dealt with its major creditor or emerged as a new company.

We will update this as soon as we receive more information.

UPDATE Jan 2014

Ascendant Access has been acquired by Redwood Engineering which is wholly owned subsidiary of Facelift. The business is back in full operation and according to the company most creditors were paid in full.

Vertikal Comment

It is quite likely that a new company will be formed to acquire the assets of the existing business, which we understand is viable, but which has struggled to find sufficient funding to expand for several years.

This type of restructuring flies in the face of fair business practice, but is sadly a part of the UK’s ridiculous insolvency process. A process that is totally unfit for purpose and which simply serves the vested interests of large secured creditors – mostly banks and their cronies - the insolvency practitioners, not to mention the more crooked business owners.

Whilst the US Chapter 11 process is far from perfect, it works far better and is more balanced than the UK system, which was supposed to have been revamped a few years ago but which is still completely hopeless. Under the US rules companies remain under the day to day control of the management, while the business gains protection from its creditors in order to negotiate with them prior to emerging from the process once a plan is agreed.

The UK system virtually demands that a viable business sheds the old company and transfers to a new one, regardless of any willingness on the part of its owners to work out a full repayment plan.

Given the situation and government’s inability to sort the out-and-out crooks from owners who may well honour their debts and it’s no wonder that those in a bind go for the ‘pre-pack’ administration option in order to save their businesses. The system desperately needs changing.