Tejoori Limited (LON: TJI) describes itself as a investment company that invests in ethical and Sharia compliant ventures around the world.
Liquidating trusts can be effective tools to wind down any business enterprise, including debtors in Chapter 11 bankruptcy cases and entities that dissolve outside of bankruptcy. To that end, in a Chapter 11 case, a debtor’s exclusive right to file a plan is limited to 120 days (subject to extensions for cause), but once a plan is confirmed, the bankruptcy estate ceases to exist and the debtor loses its status as debtor in possession, including its authority to act as a bankruptcy trustee and pursue estate claims.
Norton Liquidating trusts are organized for the primary purpose of liquidating assets transferred to them for distribution to trust beneficiaries. The US Bankruptcy Code seeks to promote the effective administration and settlement of a debtor’s assets and liabilities within a limited frame of time.
Overview Liquidation is a process where the company’s assets are seized and realised, with the resulting proceeds used to pay off its debts and liabilities.
Any surplus is then distributed among the contributories of the company according to their rights and interests, or otherwise dealt with as the constitution of the company directs.
A change in legislation or increased competition may make a previously profitable company no longer viable.
A company may continue to trade through a difficult few years in the hope of returning to profitability while accumulating debt with the bank or falling behind with payments to HMRC or suppliers.
Assuming that the sale of the final plot goes through without problems the balance sheet of Tejoori looks as follows: As you can see, the company has only cash remaining on the balance sheet together with some receivables and some small liabilities.
The “other receivables” are related to an earlier sale of some assets, but apparently the acquirer has so far been unwilling to settle the remaining amount.
A Creditors’ Voluntary Liquidation can only be undertaken by a licensed Insolvency Practitioner.