Accelerated sale of shares of distressed steel company

Quantuma engaged to seek a buyer for the shares or business and assets of a £12m steel company.

Overview:

  • Bristol and Plymouth based steel company making heavy losses
  • Losses compounded by legal dispute leading to credit insurers withdrawing cover putting 49 jobs at risk
  • Quantuma engaged to find a buyer for the shares or business and assets in an accelerated timeframe
  • Notice of intention to appoint Administrator’s filed in court to protect the company’s assets.

Outcomes:

  • Quantuma engaged to advise on the options available to the company
  • We instructed specialists to advise on asset values and collectability of the sales ledger before agreeing and implementing a strategy with the company’s bank
  • We approached approximately 30 potential acquirers
  • We entered into a brief exclusivity period with an investment house who wished to explore a share purchase
  • The acquiring party already owned two steel businesses so were able to reopen credit lines with suppliers to keep the company trading whilst negotiations continued
  • Share sale successfully completed resulting in all jobs saved, all stakeholders being paid and avoiding the need to place the company into Administration.

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