Talk Morgan Forums Community The Malvern Arms MOGMAG RIP?

I have been told by a well informed source that PVL the publishers of MOGMAG went into a pre pack administration on Monday 29th February 2016.

I'm not sure what a "pre-pack administration" means and wonder if MOGMAG will continue.

Anyone know anything?

It means the online version will still be available. The hard copies (pre-pack) will discontinue!!! (?)

So much for having a subscription if that is the case or will they convert my paper one to an online I wonder?

It certainly doesn't sound good for the poor staff though.

Oh dear. I found this on t'internet:

"So what is a pre pack administration sale?
restart using a pre pack administrationIn the UK, a pre pack administration sale is a powerful, legal way of selling the business on to a trade buyer or a third party. Or to the existing directors operating under a new company (or "newco") if the business is facing serious problems and creditor threats.

If a winding up petition is threatened, this can be a powerful solution. Don't wait until a winding up petition is issued through, because pre-pack is not permitted after it has been issued.

The main advantage of prepack administration is the continuity of the "business". When the plan is ready and a contract of purchase is drawn up, the company is quickly protected by the Court - allowing the administrator to sell the "business and assets".

This gets rid of debts, unwanted or onerous contracts, and possibly some employees (although in most circumstances there could be TUPE issues that need to be addressed) and there can be no interruption to the business, which in itself can destroy value.

Another big advantage is that the cost of the process is lower than trading administration, as the administrators do not need to find funding to trade the business. The process, including the preliminary marketing, professional valuation work and discussions with creditors, can be very quick and done in a few days if necessary.

If the business is to be sold to a connected party, i.e. the former directors, they will need to be able to fund the acquisition of the assets. There are specialist funders who can help with this, call Keith Steven on 07974 086779 for guidance. The business and the assets will need to be independently valued to avoid problems of under valuing assets.

Of course, a pre pack can generate negative publicity if the former directors are seen to be shedding liabilities. However, it should be remembered that the business was already insolvent prior to any appointment and a protracted process ending in liquidation could have been the alternative - possibly with the loss of many more jobs."

When a company goes into administration, it hits a brick wall. A dead stop. But the directors will know in advance that it's going to go bust - so they talk to an acquirer about buying the assets and the goodwill for a knock-down price. This is 'packaged' as a solution to an administrator. The administrator can either kill the business (horrid) or say, 'ok, that looks a reasonable deal'.

That's roughly it Peter.

I've seen it happen a few times in my industry, fortunately I've never been in that position though.

PS - a pre-pack sounds to me like the magazine may come back. Otherwise why buy it? Not sure though

It looks as though it is a legal way of walking away from problems, leaving the business running.

The only loosers are those that have invested in the business or those it owes money to. An example of, as Ted Heath described it, the "unacceptable face of Capitalism".

I will not be renewing my subscription.

Sounds like a Phoenix to me. The Newco should rise from the ashes of old firm.
Those who have subscriptions may have something to worry about but the business often continues to trade as though nothing has happened. The major creditors are the people who lose most. In recent years that tends to be HMRC with NI and Corporation Tax being unpaid. As long as the directors of the old firm have not done anything that might see them being disqualified as directors, the same people are usually involved.

In other words - wait and see.

What other titles did/do they publish ?

I can also say that Project Viva Limited the publishers of Mog went into administration on Monday 29th Feb, I also have heard the reason is why, was to avoid paying any money owed to Matti who was taking them to an employment tribunal later this month

Interesting reading as Stephen Dorrell is also part of Project Viva


http://www.telegraph.co.uk/finance/newsb...moral-deal.html