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Graze and Discover Ltd (GDL) operates a very successful ne dining cafe in Manchester. The sole directors and shareholders are Kerry and Carl Davies who
Graze and Discover Ltd (GDL) operates a very successful ne dining cafe in Manchester. The sole directors and shareholders are Kerry and Carl Davies who set up the company in 2010. Recently there has been major disruption to the business caused by a new road being built nearby and access to the street where GDL's cafe is has been restricted. Loyal customers are no longer visiting the cafe and GDL is struggling to pay the costs of running the business. Furthennore, GDL has recently had to close for six weeks due to an electrical fault in the cafe and is now unable to pay what it owes its creditors. Advise GDL on the alternative rescue procedures which might be available under the insolvency legislation. and In particular, the possibility of an administration order and what this involves. [25 marks}
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