Avient Limited which operated under the overarching brand of ‘Avient Aviation’ was a global air cargo carrier. The sales and marketing headquarters and administration centre were based in Amesbury, near Salisbury, in Hampshire with an operational hub, servicing and aircraft base in Liege, Belgium. Whilst the geographical coverage has been worldwide, the business had particular strength and reputation for servicing the African continent, partly because historically the founders of the business originated in the southern African area.
As a result of an aircraft crash in 2009, followed by the worldwide recession, the company was operating with a substantial deficit for some time, which had been allowed only because of forbearance by creditors and intensive negotiations. During the latter part of 2012, this was becoming untenable and a number of trade creditors and HMRC for outstanding tax liabilities were pressing for a resolution. The then owners, Mr Smith and Mr Kling, sought to raise new equity or loan finance to address this. It had been a difficult environment in which to raise funding in any case; the disparate ownership of the business across various countries, the poor results and the absence of tangible assets for security meant that it proved impossible to do so in this case.
By end of 2012, the former owners recognised that they would be unable to bring about a recovery, at least with their involvement in which potential finance providers had lost confidence. Rather than close the business altogether, they passed ownership and directorship of the UK business for a nominal sum to existing senior managers of many years standing, Neil Glover and Simon Clarke, to see whether they could rescue the company.
Upon a review of the financial information available they quickly concluded that the company was insolvent and approached James Tickell of Portland for Insolvency Advice. It was concluded that steps should be taken to place the company in to administration. James Tickell and Carl Faulds were appointed joint administrators on 5th April 2013. During the administration steps were taken to try to find a buyer for the business. In the absence of any other offers the business was sold to AV Cargo Airlines Limited, an associated company.
In November 2013 the company was placed in to liquidation in order to distribute funds to unsecured creditors. An initial dividend has been paid to all creditors whose claims have been agreed. In the last quarter of 2014 we became aware that AV Cargo Airlines Limited was facing its own difficulties. A Company Voluntary Arrangement was put forward to the creditors of that company and has since been approved. This proposal allows for creditors of AV Cargo Airlines Limited, of which Avient is a substantial one, to be compromised over a five year period.
We are now able to pay a second dividend to unsecured creditors, which has been sent under separate cover.
Creditors of the company can read the full report here