Davidson Webber LLP has advised on a corporate restructuring exercise for London based Kypera Group, a mulit-million pound turnover family owned business specialising in supply of bespoke financial systems and housing management software across the globe.
The deal which involved setting up two new companies, a hive up of business and assets from one subsidiary to another, distributions in specie and the liquidation of the group’s holding company Thompson International Software Limited via a members voluntary winding up under section 110 of the Insolvency Act, effectively split Kypera’s business into two separate distinct businesses under identical ownership.
Saffrey Champness’ Harrogate office provided the relevant tax and accounting advice. Davidson Webber LLP acted for the Kypera Group and its individual family shareholders. Armstrong Watson accountants in Leeds took the insolvency appointment and dealt with the winding up of the holding company.
Neil Large said : “this was a particularly challenging transaction which needed to be done within a relatively short timescale. Section 110 demergers are unusual and can be fiddly, they need to be carefully co-ordinated and managed, structuring the deal correctly to take advantage of the various stamp duty reliefs on the transfer of shares and properties. Ensuring there is a good “paper trail” with detailed minutes and resolutions is paramount for a successful reconstruction scheme”. “This sort of transaction is further evidence of our ability to attract top quality corporate work in Harrogate, it would normally have gone to a dedicated insolvency team of one of the big Leeds commercial law firms” Neil added.
