Colliers primed for prepack

 

Staff at Colliers International UK have been informed that the company could enter a prepack administration this week as part of its takeover by majority shareholder FirstService International.


 

It is understood that while the agent is still working on alternative proposals, staff have been informed that a prepack administration could take place “on or about 28 March”.


 

This would see Colliers International UK, which was founded by Sir John Ritblat as Conrad Ritblat in 1959, enter an insolvency process resulting in a sale by administrators to FirstService vehicle, FS 123 Limited.


 

According to Companies House the directors of FS 123, which was registered on 19 March, include current Colliers chief executive, Tony Horrell, and chief operating officer, Martin Lubieniecki.


 

The third director is Canadian Chris McLernon, who joined the struggling agent as EMEA chief executive in 2009 when FirstService paid £9m for a 29.9% stake in the firm.


 

An alternative to the prepack route is for FirstService, which entered takeover talks with Colliers in January, to pay a nominal amount for the firm’s shares.


 

FirstService has until 5pm on 3 April to make a bid or walk away from the firm under a Takeover Panel deadline imposed last week.


 

Colliers declined to comment.

 

bridget.oconnell@estatesgazette.com

EGi publishes more news articles online than any other UK commercial property service.

Find out more about EGi News.