Appleby help out IOM subsidiary of troubled UK IT company

James Qualtrough | February 18, 2013 | 0 Comments

The well publicised difficulties of IT supplier, 2e2, reached a positive conclusion this week as the Isle of Man subsidiary was sold as a going concern to a local businessman, saving 27 jobs on the island in the process.

Appleby partner, Mark Holligon, assisted by other members of the firm’s cross-departmental insolvency and restructuring team, successfully applied on behalf of the Isle of Man subsidiary for the appointment of Gordon Wilson of PricewaterhouseCoopers LLC as a provisional liquidator, whilst negotiations took place with 2e2’s banks and the Isle of Man subsidiary’s landlords, whilst a buyer was sought. Following the release of many millions of 2e2 Group debt that was secured over the Isle of Man company’s assets, the Isle of Man subsidiary was restored to solvency and left provisional liquidation under new ownership.

Mr Holligon said: “This is a great example of how, with the support of secured creditors, provisional liquidation can be used to save a business. We drew on the resources of our other offices around the globe to provide the Manx Court with authorities for the proposition that a provisional liquidation can be used for this purpose. The support of customers, staff and suppliers to the Isle of Man business was essential in the successful outcome of the process”.