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Share Holding In A Business That Has Gone Into Admin


FIGGY
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My grandfather has come to me about a shreholding that he has. He has 100k shares in a company trading on the LSE at £8 per share (peak). He thinks someone has called him as they are looking to buy the company (he is a mid sized shareholder) but after some research the company was delisted late 2011 and from my reading sharholders are getting nothing.

Is there anything that can be done? The company was sold as a going concern but only to cover some of the bank debt. I assume this means he really has lost it all.

I'm not expecting anyting other than the worst news but I wanted to ask before I break it to him (he is almost 90).

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My grandfather has come to me about a shreholding that he has. He has 100k shares in a company trading on the LSE at £8 per share (peak). He thinks someone has called him as they are looking to buy the company (he is a mid sized shareholder) but after some research the company was delisted late 2011 and from my reading sharholders are getting nothing.

Is there anything that can be done? The company was sold as a going concern but only to cover some of the bank debt. I assume this means he really has lost it all.

I'm not expecting anyting other than the worst news but I wanted to ask before I break it to him (he is almost 90).

Without knowing the name of the company, I don't think anyone can give you any useful information.

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Without knowing the name of the company, I don't think anyone can give you any useful information.

I knew someone would ask this. I can't say at the moment, but once I can I'll post up. From some newspaper reports shareholders are getting nothing, but the fact he has been approached about the shares makes this all seem a bit odd.

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Companies go into adminstration and can come out again with the existing shares still there and with value but with the majority shareholding changing hands. I have shares in a football club that went into administration, they were worth buttons for ages but with that club now doing quite well they've come back to having some value.

If the COMPANY has been sold as a going concern then he still owns part of the company, it will be the majority shareholding that has been sold.

If the BUSINESS (as stated) has been sold off and the money gone into the company and used to settle debts then there may now be no assets left in the company in which he has shares so his shares are worthless.

It depends what has happened, admnistrations play out in many different ways inlcuding partial sell-offs of the business and many football clubs show you go into admin and come out again, it's not liquidation.

I suggest your first step is go to the administrators and read their reports to the creditors as to what actions they have taken.

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Companies go into adminstration and can come out again with the existing shares still there and with value but with the majority shareholding changing hands. I have shares in a football club that went into administration, they were worth buttons for ages but with that club now doing quite well they've come back to having some value.

If the COMPANY has been sold as a going concern then he still owns part of the company, it will be the majority shareholding that has been sold.

If the BUSINESS (as stated) has been sold off and the money gone into the company and used to settle debts then there may now be no assets left in the company in which he has shares so his shares are worthless.

It depends what has happened, admnistrations play out in many different ways inlcuding partial sell-offs of the business and many football clubs show you go into admin and come out again, it's not liquidation.

I suggest your first step is go to the administrators and read their reports to the creditors as to what actions they have taken.

Well it turns out the holding company was put into a pre-pack. Wipedout the hareholders and then the trading copany was sold on to help clear some of the debt to the banks. Having done some more reading it all looks a bit odd but the bottom line is the shares are worth 0.

The offer could be from a company that holds a short position and wants to close it out early from what I have read but I dont really know how that works?

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