Background
A formerly successful specialist engineering systems company turning over £5M saw revenues significantly drop to £1M as oil and gas prices fell, leading to sector wide spending cuts.
Issue
When £1M profit turned into a £1M loss within just two years, seeing signs of financial distress, the company’s funder introduced us to the business. The director was keen to continue the business but unable to do so with the existing structure under the weight of debt.
Outcome
We initially carried out a low-cost review - within 48 hours we were able to advise the director of his options.
Through a prepack Administration and as a collaborative approach with the funder and accountants, we were able to develop an AMA strategy and seek an appropriate funding package for acquiring the company.
As a result, we were able to ensure all secured creditors and preferential creditors received money owed, totaling £142,000 in full and unsecured creditors received an estimated 55p in the £ of the £625,000 they were owed.
Additionally, we were able to enhance the accountant’s position with its client and engage them to prepare a six figure TLR (Teller Transaction) Claim as well as saving 13 jobs within the company.
