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.”

Tom O'Dell - Aldermore Bank

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.

our offices

Bristol Office

Credebt Ltd

Trym Lodge
1 Henbury Road
Westbury-On-Trym
Bristol
BS9 3HQ

Manchester Office

Credebt Ltd

2nd floor
3 Hardman Square
Manchester
M3 3EB

London Office

Credebt Ltd

Hamilton House
Mabledon Place
London
WC1H 9BD

 

Credebt Certifications

Credebt Limited: Registered in England Number: 6933734 Registered Office: Trym Lodge, 1 Henbury Road, Westbury on Trym, Bristol BS9 3HQ
Data Protection License Number: Z1837677 | Credit Services Association Membership number: 804

Do you suspect fraud?

Download our FREE guide with the essential do's and don't's.

 

Just fill out your details and we'll email it to your inbox immediately

Check your inbox!

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

Can't fund a client?

Get our FREE guide and find out how you can improve the ledger profile and associated systems and processes to make them fundable

 

Just fill in your details and we will email it to you immediately.

Check your inbox!