Advisory Services to a Building Contractor

Quantuma provide advisory services to a building contractors.

Overview:

  • Building contractors in Hampshire
  • The company had been suffering from financial difficulties resulting in the accumulation of creditor arrears
  • We were contacted by the company’s accountants following the company being served with a Winding Up Petition
  • A sum of circa £200K was owed to the petitioning creditor

Outcomes:

  • The company had made a number of significant changes to the business resulting in it being stronger standing to rectify it’s cash flow position
  • Should a Winding Up Order have been made, this would have resulted in the company ceasing to trade and all staff being made redundant
  • We commenced negotiations with the creditor however they were unwilling to agree to a repayment proposal and insisted the winding up hearing proceed
  • Due to the petitioning creditors reluctance to agree a repayment plan and withdraw the petition, steps were taken to obtain a Validation Order for continued trading of the Company following the Winding Up Petition and obtain an adjournment to allow sufficient time for full payment to be made
  • Cash flow forecasts were prepared and submitted to Court to show that the company could repay the balance in full
  • A 7-day adjournment was successfully obtained and steps were taken following this to ensure payments were made to the creditor as had been indicated in the cash flow
  • All payments were made and the Winding Up Petition was dismissed at the adjourned hearing
  • During this period we also liaised with management to assist them with raising finance to aid cash flow further
  • The company continues to trade today protecting jobs of the employees

 

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