Hope for creditors as Albany’s UK companies enter administration

Wed, 10 Feb 2010

Four of Albany’s UK companies entered the administration process today, with comments by one of the joint administrators that creditors may get some of the money they are owed.

In a statement, accountancy firm Carter Backer Winter (CBW) says that John Alexander and Melvyn Carter of the firm have been appointed as joint administrators to Albany Holdings and its UK subsidiary Albany EMEA and liquidators of UK subsidiaries Albany Management UK, and Albany Employment Services (referred to as ‘Albany’). The position of Albany Technologies, which announced earlier this week that it was ceasing trading, is unclear from this statement.

Joint administrator and partner at CBW, John Alexander, says: “We have only just been appointed so it is too early to be definitive. However, we are hopeful that there will be at least some dividend to creditors, including former employees who may also be entitled to additional amounts from the government’s redundancy fund where they have unpaid salaries. We will be moving quickly to ascertain the exact situation and will be writing to creditors individually within the next couple of days.”

The statement continues: “There has been no transfer of Albany’s business in the UK and no deals have been finalised, although this may yet happen if it can preserve value for the creditors of Albany or support the overseas operations. The administrators will be contacting its UK customers to ensure a speedy payment of all outstanding sums quickly, many of which were subject to an invoice finance agreement in the UK.”

Alexander says: “I would like to emphasise that this only affects Albany in the UK. Albany has a number of foreign subsidiaries, particularly in the US, Brazil, Canada, the Netherlands and also Asia-Pacific (out of Singapore). These businesses are independent, stand-alone, profitable and sound. It will continue to be business as normal for them, although I am keen to hear from trade purchasers or anyone else interested in acquiring them. I can emphasise that this is not a ‘pre pack’ insolvency.”