Background

Alexaner Inglis & Son limited was a family owned, grain merchant operating from 5 sites across Scotland and England. With a turnover of £100 million, the business was founded in 1950 supplying cereal, barley, seed and fertiliser predominantly to customers in the whisky, malting and distilling sectors. The company was impacted by wider challenges facing Scotland’s grain industry, ultimately leading to weaker trading. The company’s Board appointed FRP as administrators to wind down the business and maximise value to creditors.

Action

FRP’s Restructuring Advisory team, led by Partner Chad Griffin, took control of the grain stores.   to It quickly became apparent that this would be a highly complex administration, uncovering that the company had been over-selling its grain stock, resulting in multiple competing third party claims on remaining grain and a huge shortfall overall. FRP undertook an assessment process to forensically review the validity of claims made however, poor financial records meant this became a highly contentious process. In addition, the team also oversaw stock uplifts and the disposal of assets including the grain stores in order to maximise returns for creditors.

Outcome

Given the contentious nature of the administration, the team agreed settlements to allocate the grain as fairly as possible to minimise distress to the wider farming community. The sale of assets meant realisations to creditors was maximised.