MOORFIELDS ADVISORY SECURE SALE OF PELLET AND BIOMASS ENERGY FACILITY
Moorfields Advisory are delighted to have secured the sale of certain assets of 3F Pellets Limited (in Administration) to Flush Energy Limited.
3F Pellets, based in Saxilby, Lincoln, was established in 2015 to manufacture and supply wood-based pellet products such as cat litter, horse bedding and biomass heating pellets. Recently the company had invested heavily in machinery and equipment with a view to further expanding into the bioenergy sector. The company had struggled to break into the market, leading to financial difficulties and an inability to service its debt to its secured creditor.
Andy Pear and Milan Vuceljic of Moorfields were appointed Administrators on 22 February 2023. The Administrators instructed agents Hilco Global to conduct an extensive marketing exercise, launching on 3 May 2023 with a circulation of marketing materials to a large database of companies and individuals.
The assets available for purchase included various bespoke items of plant and machinery as well as a unique opportunity to acquire two Renewable Heat Incentive accreditations.
The Administrators accepted an offer for 3F Pellets’ business and assets on 26 May 2023 and instructed the insolvency and reorganisation team at international law firm Clyde & Co LLP on the sale, led by partner Andrew Foster and assisted by Tristan Cox-Chung (legal director). The sale completed on 28 July 2023, achieving a final sale price of £4.25m.
Andy Pear, Partner at Moorfields said “We are delighted to achieve a substantial sale price in what was a unique proposition reflected in the high level of interest. The sale was not without its challenges but alongside our highly skilled advisers we achieved a fantastic result for 3F Pellets’ creditors.”
ENDS
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About Moorfields
Moorfields Advisory Ltd is one of the UK's leading boutique firms of restructuring and insolvency specialists. The highly skilled teams include restructuring professionals and licensed insolvency practitioners who provide leadership, experience and high-quality advice to companies and their stakeholders in financially distressed situations.
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