Architect Practice – One bad event
Our client had invested in a project that failed to take off as well as expected. They came under huge creditor pressure and were failing to raise new sources of funds. With falling sales the director became concerned for his personal guarantee.
We introduced controls including weekly cash management then moved the trading into a new subsidiary before arranging a CVA of the troubled company to repay creditors out of receipts from the new subsidiary. The employees were retained with modest salary reductions.
Equipment manufacture & repair – One bad event
Our client company had a bad debt following contract dispute that resulted in considerable creditor pressure. The business had poor financial administration systems and the overdraft was guaranteed by the director.
We introduced weekly cash management and monthly accounting.
Staff levels were reduced to avoid TUPE liabilities and the lease was terminated. The trading business and assets were then sold as a going concern to an associate company. The old company entered Voluntary Liquidation. Contracts of employment and staff handbook introduced.
- Recruitment agency
- Situation
- Sales declining
- Losses mounting
- Increasing creditor pressure
- Rescue outcomes
- Close 1 office with exit from lease
- CVA to cram down and reschedule liabilities
- Marine engineers
- Situation
- Lack of control over cashflow
- Bank concern about overdraft
- Considerable creditor pressure
- Fixed price tenders were unprofitable
- Director guarantees
- Rescue outcomes
- Installed weekly cash management tool
- Refinanced overdraft
- Changed contracts to charging time
- CVA to cram down and reschedule liabilities
- Director IVAs to protect them from bankruptcy
- Online training company
- Situation
- Start-up that hadnt reached break even sales
- Creditor pressure
- Supportive shareholders
- Rescue outcomes
- Standstill agreement with creditors
- Reorganisation to cut overheads
- Identified key merger targets
- Sold business and assets to repay creditors in full and distribute significant surplus to shareholders
- Vending equipment
- Situation
- New concept in UK to provide ground coffee from machine
- No sales of vending equipment to retailers as site owners
- Creditor pressure
- Great opportunity
- Rescue outcomes
- Standstill agreement with creditors
- Raised investment
- Changed business model to provide machines and share revenue with retailers
- Highly profitable with significant growth
