Clipped wings

read timeRead time: 1 min

 PKF completes the successful sale of Aviation Parts supplier.

Stephen Goderski and Peter Hart of PKF have successfully completed the sale of the business and assets of a major aviation parts supplier after the business ran into financial difficulties.

The Company, listed in the Financial Times 2022 top 400 Fastest Growing Companies in Europe, required restructuring advice when it became unable to repay a corporate bond which had reached maturity. The Company had agreed a standstill agreement with the bondholder, but was unable to agree an extension or raise sufficient finance to make the repayment in full.

The significant impact of COVID-19 on the aviation industry resulted in two extremely poor years of trading for the Company in 2020 and 2021. Despite significant improvements in trading during 2022, the Company was unable to recoup the losses made in prior years to meet the repayment terms of the terms of the bond.

The Joint Administrators successfully marketed the business and assets of the Company, and a suitable purchaser was identified. A Sale Purchase Agreement for the business and assets of the Company was concluded, enabling a substantial distribution to the bondholder and the continuation of trade.