An adminstrator's report has revealed just how close Entatech was to being acquired before it went bust, with a prospective sale falling through on the day it was slated for completion.
Entatech went into administration in May, after failing to secure a buyer following a sale process.
Beta Distribution was closest to completing an acquisition, before pulling out after uncovering information during the due diligence process.
The adminstrator's report, filed by KMPG with Companies House, has now revealed that the preferred bidder pulled out of the deal on the day it was set to complete (Friday, 5 May).
The report also shows the extent of interest Entatech received - with 130 investors and 30 trade parties making an approach; 17 partners expressing interest; and 10 parties signing non-disclosure agreements.
Two bids were made by the 21 April offer deadline, including one from Entatech's management, before a third bid was made on 26 April - which went on to be the preferred bid.
The report stated: "An acceptable offer was negotiated, contracts were progressed to final draft and solicitors were in funds.
"Completion was set for Friday 5 May 2017, but unfortunately the bidder confirmed on this date that it would no longer be in a position to complete."
Following the collapse of the takeover, Entatech went into administration before its assets were acquired by managing director Dave Stevinson's GNR Technology.
Entatech had been in financial difficulty since agreeing a £1.2m settlement with HMRC over legacy issues that originated under its previous owners.
Some £700,000 of this was paid between February and April 2016, with the remainder spread out over a 30-month period.
Alongside this, in January 2017 Entatech agreed to pay £750,000 in deferred VAT over a four-month period, but breached the agreement by missing a payment in March. The process of selling Entatech was started around this time, eventually resulting in the formation of GNR Technology.
According to the administrator's report preferential creditors will be paid in full, while unsecured creditors are expected to receive a dividend of an unspecified amount.
A separate report filed recently on Companies House suggested that unsecured creditors would receive around a two-thirds return, with £9.7m owed and around £6.3m thought to be available.
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