Partner Article

Smith & Williamson leads the restructuring of charity

Administrator Matthew Dunham of Smith & Williamson has successfully sold a significant proportion of the business and assets of the Institute for Sustainability (‘IFS’) to the Building Research Establishment Ltd (‘BRE’), shortly after appointment. Both the IFS and the BRE are not-for-profit enterprises.

IFS, based in the heart of London’s ‘Tech City’, went into administration on Tuesday 5th January 2016 following a period of financial uncertainty. The organisation had been established in 2009 to accelerate the delivery of economically, environmentally and socially sustainable cities and communities.

Smith & Williamson’s work with IFS is the latest in a number of successful reorganisations of troubled charities which have been undertaken by the firm’s Manchester restructuring and recovery team in recent months.

Matthew Dunham, a partner at Smith & Williamson’s Manchester office, comments:

“Ultimately, the costs to the Institute proved unsurmountable and so there was unfortunately no option for them but to go into administration. However, the speed of this sale helps to minimise disruption and means its work will continue in a similar vein under the auspices of the BRE. All in all, it’s the best outcome for the Institute, given the difficult circumstances.”

“The Not for Profit and Charitable sectors are facing significant issues as a result of the impact of government cutbacks, fundraising deficits and the use of technology. This case demonstrates the need for Trustees to take early advice in order to protect the organisation’s objectives and the jobs of the staff. We’ve developed a number of tools specifically to assist Trustees and their executive to address problems within the sector”.

The sale to the BRE was achieved as part of a Pre-Packaged Amalgamation.

The IFS and the joint administrators were provided with legal support from Brabners LLP, including Adrian Rogers (restructuring), and Stephen Claus (charity law).

This was posted in Bdaily's Members' News section by Smith & Williamson .