One of the North-east’s leading insolvency experts, Michael Reid of MHA, has been appointed administrator for an Aberdeen managed IT services provider.
As a result of a submission to the Court of Session, Internet for Business Limited, which was established in 1995, appointed an administrator on Thursday, February 20.
This followed a detailed process to find a suitable buyer and preserve employment for 12 employees.
The firm has been bought for an undisclosed sum in an agreement that seeks to ensure ongoing service delivery to hundreds of customers.
Mr Reid said: “This is the culmination of a five-month period of the board actively marketing the business for sale but, because of the company’s liability position, the arm’s length transaction took the form of a pre-packaged sale, which was formally signed on February 20.
“All 12 employees have transferred to the buyer, who has accepted responsibility for looking after the extensive customer base. The sale was vitally important to ensure the ongoing and uninterrupted business activity of all customers.
“The financial information available reflects that Internet for Business struggled to make a profit in the competitive arena of internet service provision. This deal is positive in that it preserves the services of a long-standing Aberdeen company.
“It is too early to provide an indication of dividend prospects, and the initial focus is upon a seamless customer transfer. A detailed analysis of the financial position will be provided to all creditors when the administrator’s report is issued.”
