WRFC Trading Ltd - Case Update

The joint administrators of Worcester Warriors have confirmed that new owners Atlas have still not paid £1.2 million in deferred consideration for the purchase of the rugby club.

In their most recent report, joint administrators Julie Palmer, Julian Pitts and Andrew Hook of Begbies Traynor reveal the terms for payment agreed with Atlas, and just how late the new owners are on paying the £1.2 million still owing.

The joint administrators reveal that, on completion of the sale to Atlas on 2 May, Atlas paid £1.55 million, being the amount due on completion of £2,050,000 less a £500,000 deposit. £1.23 million of the purchase price was allocated to plant, machinery, fittings and equipment, while £0.8 million was allocated to goodwill and IP. After initially agreeing to pay the deferred consideration of £1 within 2 years of completion, Atlas agreed to move that date up to 9 October 2023.

Although Atlas has yet to pay this amount, which now totals approximately £1.2 million, the joint administrators appear optimistic, stating that they intend to send a letter to creditors detailing the marketing process and offers received for the company “once the deferred consideration is received”.

The joint administrators have been assisted by Bryan Cave Leighton Paisner. Their latest progress report can be found HERE. Atlas have been assisted by Shoosmiths.