Only one offer was received for Fairline Yachts to continue trading as a going concern after insolvency proceedings were initiated by the boatbuilder’s main creditor in January 2025.
That’s according to the administrators’ progress report on the status of the UK boatbuilder.
The report states that a sale process was started immediately following the administrators appointment, with the aim of achieving a sale of the business as a going concern.
Administrators contacted more than 320 potential interested parties and entered into non-disclosure agreements with 53 interested parties.
Going concern
Five offers for various elements of the business and assets of the company were received and the offer from Fairline Holdco Ltd (FHL) for £6.7 million was accepted – the only offer received for the business as a going concern.
The offer consisted of £5.7 million of debt repayment and £1 million of cash payable on completion.
When administrators were appointed, Fairline had two secured creditors – Barclays Bank which has been repaid, and DF Capital which was owed £9.4 million.
The report states that administrators are still managing the affairs, the business and the property of the company in order to achieve the purpose of the administration.
Creditor claims
The progress report also states that the business continued to trade following the appointment of administrators to retain value by progressing the work in progress and to reduce creditor claims against the estate.
Costs associated with trading have been funded by DF Capital under an administration funding agreement (AFA), contributions to costs from key stakeholders and sales made to third parties.
Funding of £6,296,808 has been drawn under the AFA to cover costs accruing in relation to trading.
Financing agreement
The financing agreement allows DF Capital to complete sales direct to customers as boats are completed with a percentage of sale proceeds allocated to the AFA.
So far £5.7 million has been repaid to DF Capital, which includes £2.7 million of funding under the AFA.
Administrators anticipate that the ordinary preferential creditors will be paid in full, while secondary preferential creditors should receive a dividend and based on current estimates,
There are insufficient funds for unsecured creditors of Fairline Yachts to receive a distribution.
