London Mining PLC Enters Administration
The London based iron ore mining company is placed into Administration following a failure by the Company to find a buyer for the business. It is thought that the Company suffered in recent times from the fall in the price of Iron leading to its failure.
The Company, which operates a mine in Sierra Leone, is also involved in assisting with the treatment of the Ebola outbreak which threatens the area.
The Company had been a huge success in the past with its flotation on the stock market, however it was announced last week that London Mining Plc had “suspended trading on AIM.
Administrator’s Price Waterhouse Coopers have been appointed and have advised that they are in advanced negotiations with “several potential bidders”.
What is the Administration sale process?
The sale process of course for a Company in Administration allows for the Administrator’s to be appointed and take control whilst a period of marketing is done. However with the Company having already ceased to trade, the longer time goes on, the higher risk there is that no buyer will be found and that all 1400 staff which the Company employs would lose their jobs. Fingers crossed that a sale is achieved soon.
This is but one in a number of foreign based Administrations handled in the UK as, on many occasions, the centre of main interests (or put simply, the head offices and main operations) for a number of foreign located businesses, can be considered to be in the UK and therefore, their insolvent closures can be dealt with under UK law.
If you or your client need further advice on whether an Administration is right for you, or whether the company in question can be dealt with here in the UK then please feel free to give us a call.