Recovery plan rescues engineering firm PaveTesting Ltd
An eight-month rescue plan devised and implemented by corporate recovery specialists Quantuma for a Hertfordshire engineering firm has paid off.
In August last year Quantuma partners Simon Bonney and Andrew Hosking were appointed joint administrators of PaveTesting Ltd, based at Unit 2, Iceni Court, Letchworth Garden City.
The company designs and manufactures pavement testing equipment, supplying government agencies, major civil engineering contractors and airport operators worldwide.
Custom-built to order, its machines are heavily involved in maintaining road and runway surfaces.
Simon Bonney said the business hit problems in 2016 following “challenging conditions in the marketplace”.
“We set out to try and save the business as a going concern – it makes high quality products and is a world leader in its field,” he said.
In August last year, the company was severely distressed with no cash to meet the next wage bill, and the board set about working with Quantuma to establish the viability of the business.
To provide short term protection, PaveTesting was placed into administration with Simon Bonney and Andrew Hosking as administrators.
Quantuma negotiated funding to meet the ongoing business costs, while discussions took place with the board of directors and shareholders to enable a rescue plan to be delivered.
Simon Bonney said: “As a result, the company recently exited the administration process via a Company Voluntary Arrangement under which the majority of creditors have already been paid in full.
“It is a real pleasure to be able to design and implement a rescue plan.
“While it would have been easier simply to allow the business to fail, we were willing to fund ongoing costs which has produced the best possible outcome for all stakeholders and saved a genuine UK engineering and manufacturing business.”
The news will also be welcomed by the company’s supply chain locally as machines are assembled from parts made within 25 miles of the factory.
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For further information, please contact:
Andy Skinner, Managing Director, ASAP PR – 07990 978257
Marie Wadeson, Head of Marketing,
Quantuma LLP, Vernon House, 23 Sicilian Avenue, London, WC1A 2QS
Tel: 07464 545678
Notes to Editors
Quantuma LLP is a leading restructuring and insolvency practice delivering partner-led solutions to businesses and individuals facing financial distress with offices in London, Southampton, Marlow, Watford, Brighton, Bristol and Manchester.