A transparent tender process resolved a pricing dispute over the company's final asset, allowing a stalled liquidation to be completed and surplus funds returned to shareholders.
The Challenge
A long-established local manufacturing company had ceased operations and its shareholders had agreed to wind up the business. However, the liquidation process had reached a standstill as the shareholders were unable to agree on the selling price of the company's final remaining asset — a valuable piece of industrial property. The company also held surplus raw materials that had remained unsold for years, delaying the return of funds to shareholders.
Our Solution
Rather than proceeding with a negotiated sale that could be challenged by shareholders, we recommended and managed a transparent tender process for the disposal of the property. The competitive tender ensured that all parties had confidence the property was sold at fair market value while eliminating disputes over pricing.
Recognising additional value that could be realised, we also identified an opportunity to dispose of the company's remaining raw materials. Through careful coordination with potential buyers, the inventory was successfully sold at a profit, maximising the funds available for distribution.
Following the disposal of all assets, we coordinated the liquidation process, worked closely with the appointed liquidator and other professionals, and ensured all statutory obligations were fulfilled before distributing the surplus funds to the shareholders.
The Outcome
The company was successfully liquidated after years of uncertainty, with shareholder disputes resolved through a transparent sale process. By maximising the realisation value of both the property and surplus inventory, the shareholders received an optimal return while the company was brought to an orderly and compliant closure.
