what's in the news

Courtesy of Thames Valley Business Magazine February 2012

What could 2012 offer you and your business? For many Thames Valley-based businesses, 2012 is a year for optimism, opportunity, growth and investment, writes Patrick Long, Banking & Finance Partner, Pitmans LLP.
 
Respondents to Pitmans “Funding your Business” Survey , conducted in December 2011, clearly felt the UK economy’s recovery would remain in recession for the majority of 2012, but it is against this backdrop that over 60% of Thames Valley based respondents said that they anticipate a year of steady growth in 2012. This is a marked contrast to respondents from businesses which lie outside of the Thames Valley region, who predominantly forecast trade at similar levels as 2011.

The Thames Valley has long been labelled the economic powerhouse of the UK, thanks largely to its diversity, strong skills based and excellent infrastructure – attracting top talent and global businesses from software, manufacturing, pharmaceutical, utility and construction sectors.

Click here to view the summary of Pitmans “Funding your Business” Survey.

For further information on the survey, please contact Pitmans Banking & Finance team.

Patrick Long
Partner
T: +44 (0) 118 957 0488
E: plong@pitmans.com

Written Ministerial statement

Edward Davey, Minister for Employment relations, consumers and postal affairs; Department for Business, innovation and skills

In March 2011 I announced that we would be taking steps to improve the transparency and confidence of pre-pack sales in insolvency.  We subsequently consulted interested parties on measures targeted at the sales of assets in insolvent companies where these are sold to connected parties (such as the directors or their close associates).

Pre-pack sales can offer a flexible and speedy means of business rescue and when used appropriately can be the best way of maximizing returns for creditors. However, everyone who is affected by insolvency is entitled to have confidence that insolvency procedures are used fairly and that insolvency practitioners deliver the best possible outcome for all creditors.

It is apparent that concerns remain about the use of pre-pack sales, particularly where the assets are sold to a connected party – something that is often referred to as ‘phoenix-ism’. I am concerned about the potential for sales to be effected at an undervalue, particularly in smaller-value asset sales, where unsecured creditors may receive less than they should.  I also believe that it is important to consider the effect of pre-pack sales on competitors in the market.

Following the announcement, BIS officials have discussed the merits and practical application of the proposed measures with a range of interested parties, including secured and unsecured creditors, insolvency practitioners, and business representatives.

Having taken account of all the issues, however, the Government is not convinced that the benefit of new legislative controls presently outweighs the overall benefit to business of adhering to the moratorium on regulations affecting micro-business which is an important plank of this Government’s deregulatory agenda. As much of the concern was related to small businesses, I do not consider that measures should be introduced just for businesses other than micro-businesses. It is for this reason that I am today announcing that the Government will not be seeking to introduce new legislative controls on pre-packs at this time. 

The Insolvency Service, an executive agency of BIS, already monitors compliance by insolvency practitioners with the professional standard Statement of Insolvency Practice 16 (Pre-packaged Sales in Administrations) which requires administrators to provide creditors with early post sale information on details of the sale and the justification for it.

I have asked BIS officials to now undertake an urgent review in conjunction with stakeholders of how the existing controls on pre-packs have been working and whether, in light of their experiences and the outcomes from the monitoring, more could be done within the existing regulatory framework to improve confidence and transparency.  The issues raised by pre-packs are important matters that affect a wide range of stakeholders including business interests, and I look forward to discussing the findings of the review with stakeholders in the spring. 

If you would like to discuss this statement further, please contact our Insolvency & Restructuring team.

The survey is now closed.

The results will be published in January 2012.

For your copy, please email poppy@pitmans.com

Award winning law firm Pitmans LLP has advised Kamkorp Autokraft Limited, part of the Frazer-Nash Group, in acquiring the assets and goodwill of Bristol Cars Limited and Bristol Cars Services Limited.  David Archer, Partner at Pitmans led the team advising on the transaction, assisted by Sally Britton, David Cross and Emily Garvey. 

This acquisition will re-establish the connection between Bristol Cars and Frazer-Nash which dates back to Frazer-Nash’s close involvement in the foundation of Bristol Cars 65 years ago.

William Chia, the group’s Director of Operations, said: “Bristol Cars is a British institution and an important part of our national motoring heritage.  Over the next few months we will start to reveal the details of our plans to combine Bristol Cars’ tradition and iconic marque with Frazer-Nash’s pioneering technology to showcase our cutting-edge electric and range-extended powertrains.

British engineers are globally recognised for their inventions and the quality of their innovation – and these attributes are inherent in all our systems and products.  Mindful of Bristol Cars’ rich heritage and our responsibility as custodians of the brand, we are certain that our technology will blend seamlessly and successfully with the Bristol Cars tradition of engineering integrity.

Owners and enthusiasts of the cars should be assured that, even though these are early days in our tenure of the brand, we are committed to providing them and their cars with the highest levels of quality, technology and service”.

David Archer added: “Pitmans are thrilled to have assisted in saving such an iconic brand. I believe that Bristol has found a great home in the Frazer-Nash Group where it will continue to develop quality engineering, design and service – all of which lie at the heart of both companies.”

Frazer-Nash Research Limited, an affiliate within the Frazer-Nash Group of Companies, is a UK-based R&D company which is principally engaged with developing fully integrated and highly optimized proprietary systems, sub-systems and components for hybrid electric and electric drive trains. It supplied electric vehicles for use at the Sydney Olympics. It is through this affiliate that Frazer-Nash aims to achieve tremendous synergies from the Bristol acquisition.

The Bristol Aircraft Company was founded in 1910 and started producing motor cars in 1946.  Its first cars were powered by its own six cylinder engine derived from a pre-war BMW design, before it adopted Chrysler powerplants, the latest derivatives of which it uses today.  Owners of Bristol cars have always been a diverse group, including numerous crowned heads of state, Bono, Sir Paul Smith, President Jimmy Carter and Richard Branson.

Pitmans, the leading Thames Valley law firm with offices in London and Reading has strengthened its Dispute Resolution and Pensions teams with three new directorships announced.

Jonathan Durrant and William Richmond-Coggan joined Pitmans in 2005 and 2007 respectively, and have been promoted to Director within the Dispute Resolution team.  Richmond-Coggan is also a Solicitor Advocate.  Chris Netiatis joined Pitmans in 2006 and has been promoted to Director within the Pensions team.  Netiatis also heads up the firm’s Criminal Law service.

Managing Partner, Christopher Avery commented:
“Pitmans is a firm that refuses to stand still.  These promotions underline our commitment to our staff, our desire to recognise everyone’s contribution and reward it accordingly.

It is our intention to continue to build the firm through a combination of promotion from within and outside recruitment, to ensure that the firm has a good blend of knowledge, experience and business acumen to meet the demands of the modern commercial world.”