M.A.N.S. Location Services Ltd

Pre-pack Administration


June 5th 2018

The company’s funder had concerns regarding overfunding in the invoice finance facility and was losing faith in the management’s ability to produce accurate financial data. With debt amounting to £1.2M, we were introduced by the funder to provide advice on the company’s cash flow position and options.

Background

M.A.N.S Location Services Ltd is a Wiltshire-based specialist mapping company supplying equipment for cable location, water leak detection and thermal imaging to a wide range of industries, including construction, utilities and emergencies services.

Issue

The company’s funder had concerns regarding overfunding in the invoice finance facility and was losing faith in the management’s ability to produce accurate financial data. With debt amounting to £1.2M, we were introduced by the funder to provide advice on the company’s cash flow position and options.

Outcome

It quickly became apparent to us that the company had insufficient cash flow resources to offer any credible proposal to creditors. However, there was a strong customer base and so we engaged to seek a buyer for the business and assets via a prepack Administration.

As a result, we were able to provide a prepack sale to an independent purchaser which enabled all staff to retain their jobs. We were also able to enhance dividend payments to secured creditors.
 



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