3F Pellets, a wood pellet supplier, based in Saxilby near Lincoln, entered administration after its inability to penetrate the biomass market resulted in a £9m debt to a funder.
On February 22, Andy Pear and Milan Vuceljic of Moorfields Advisory were appointed as joint administrators for 3F Pellets, according to TheBusinessDesk.com.
Moorfields initially met with 3F Pellets in June 2022 when the secured creditor sought advice on exit options. It was determined that a review of the company’s options was necessary to assess its solvency and any potential debt restructuring. However, 3F Pellets’ director chose not to enter into this agreement and failed to provide any information on debt repayment to the secured creditor, leading to the company’s administration.
Moorfields is now working to sell 3F Pellets’ property assets to raise funds for repaying the secured creditor. All staff members, believed to be approximately 16, have lost their jobs. The joint administrators have stated that unsecured creditors are unlikely to receive any of the money owed to them.
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