RSM Tenon has appointed administrators and announced its trading entities will be sold to Baker Tilly.
The move follows Baker Tilly's announcement earlier today that it did not intend make an offer for the entire issued share capital of RSM Tenon.
The company said if it breached its banking covenants, Lloyds Banking Group would not be willing to grant a covenant waiver and therefore it would not be able to meet its liabilities.
Three insolvency practitioners at Deloitte LLP have been appointed as joint administrators to RSM Tenon Group. The joint administrators have agreed a sale of the company’s trading entities to Baker Tilly which is expected to be completed in two weeks.
It said that the sale would realise no value for the ordinary shares of the company, and that Lloyds would not recover its debt in full. At 31 December last year, RSM Tenon had borrowings of £80.4 million. Tenon said no employers, clients or suppliers, other than Lloyds, would be affected.
Last month Tenon’s share price tumbled after it revealed it had received an unsolicited takeover approach form Baker Tilly.