Poultry Farm in Yorkshire
Moorfields were engaged to advise on a distressed poultry farming business operating across two sites in Yorkshire and Amersham.
The business comprised:
- A poultry operation with 48,000 chickens under a pay-to-lay agreement with Noble Foods
- A farmyard conversion project developing residential properties
Despite completing the residential conversions, the business faced challenges selling the properties, combined with rising financial pressures. These were compounded when a major feed supplier issued a winding-up petition against the company, prompting the need for professional intervention.
Objectives
- Stabilise the business and manage operational and financial pressures
- Protect and realise the value of key assets, including agricultural and residential property
- Safeguard stakeholder interests, including lenders, HMRC, suppliers, and regulatory bodies
- Explore restructuring and refinancing options to place the business on a sustainable footing
- Deliver an orderly and compliant Administration process
Moorfields’ Actions
- Conducted a full Independent Business Review (IBR) and options analysis to identify viable restructuring routes
- Developed robust contingency planning and ongoing monitoring while managing relationships with key stakeholders including HMRC, feed suppliers, DEFRA, agricultural accountants, and solicitors
- Were appointed as fixed charge receivers over the property assets and administrators over the trading company
- Facilitated the sale of non-core assets to reduce lender exposure and improve returns on the farm’s assets
- Successfully refinanced a £9 million asset portfolio, encompassing residential properties, agricultural land, and dwellings
Results
- The secured lender was repaid in full
- The business was restructured and placed on a stronger financial footing
- Key assets, including farm and residential properties, were realised or refinanced to maximise value
- Operational viability of the poultry business was safeguarded, protecting long-term farming operations
- Stakeholder relationships were managed professionally, ensuring compliance and confidence throughout the process
