Case Study 11
We recovered the Bank debt in full in a very complex group Insolvency
summary
We successfully recovered over £5 million working for an Insolvency Firm to recover the Bank’s position of £3.4 million when a complex group of companies with a turnover of £75 million became distressed and ultimately entered an insolvency process.
Facts
A group of 4 Companies in Construction Manufacturing, Surveying, Consulting, Steelworks and Engineering was potentially entering insolvency.
The group turnover was £75 million. They had a Bank debt of £3.4 million, with a total Ledger value of £7.8 million. There were over 600 debtors between the 4 companies.
We were initially engaged in the planning of the potential insolvency.
actions
Prior to the insolvency we visited the site on 5 occasions to do a full Debtor Collateral Review and find out the exact position.
When the insolvency was declared we were on site many more times and reported daily on the position, to allow for the correct timing of the restructuring of the group and to maximise realisations.
We fully reviewed the order to cash process of each business and kept control of the position.
At the same time we were advising on potential offers to buy following a planned pre-pack Administration.
Results
From the four companies, one was saved and three entered Administration. One of the companies that entered Administration was bought out and started trading as a New Company.
New Company, with our supervision, dealt with the collection of one ledger whilst we dealt with the other two that were in Administration. We retained an ex member of staff and server access for a period of time, to assist with the collections and make sure we could maximise realisations.
The Bank debt was recovered in full which meant that the saved company remained, because they didn’t have to cover the cross guarantee that they had in place.
From the remaining companies, a total of £5.1 million was collected, which provided a healthy surplus for Unsecured Creditors.
Bank Debt fully recovered
million recovered
How can we help?
Credebt provide a full range of expert Receivables Management Solutions to the Insolvency Profession, the Invoice Finance Industry, Turnaround Practitioners, advisers and their clients, from full sales ledger recovery to outsourced credit control.
For more information about how we can help call 08456-6385256
or email our MD, Glen Morgan at glen@credebt.co.uk
“I have instructed Credebt on several occasions and have always been happy with the results. Credebt are out on site quickly and provide feedback as soon as they are on site. Very useful for both in-life cases and new business opportunities.
I would have no hesitation in recommending the Credebt Team for Risk Management and Receivables Management work.”
Get In Touch
We work for Invoice Finance companies, Insolvency Practitioners and Turnaround Specialists throughout the country. If you would like us to contact you to discuss our services please send us your details.
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