We successfully recovered £900K of the £300K Funds Out position on behalf of a major Insolvency Practitioner when a central London printing company went into Liquidation.
A central London Printing Company was due to go into Liquidation with a proposed date of three weeks later.
We were instructed at the preparation for Collect Out stage by the Insolvency Practitioner who was not on the Funder’s panel and therefore nervous that they might not retain the job.
When we came in, the Funder was owed £500K on a £750K ledger.
We visited the site and completed our initial Report within 24 hours. This allowed the IP to communicate with the Funder that their money was safe and that a plan had been agreed. Most importantly, they could tell the Funder that the Collections would not cost the Funder anything.
We attended the site 6 times over the initial 3-week period leading up to the meeting of the Creditors. We worked all Work-In-Progress through to Invoicing, resolved and wrote off all queries and commenced the pre-appointment Credit Control to maximise the position.
On the day of Liquidation, the ledger value was still £750K because in the preceding 3 weeks we had collected in £200K but also invoiced an additional £200K. That meant that the Funder was only owed £300K at the point, against a £750K ledger.
We agreed to complete the Collect Out for the Funder free of charge as we would be invoicing the IP on the reassigned ledger.
Following the reassignment, we collected a further £400K, bringing our total Collections from the first day of engagement to £900K, with a very healthy surplus for the benefit of the unsecured Creditors.
This shows our flexible approach and the importance of engaging us as early as possible in the process. It was a win-win for everyone: the Funder got all their money back at no charge to them, the IP retained the job and got a healthy fee, and even the unsecured Creditors got some money back.
of Funds Out
How can we help?
Credebt provide a full range of expert Receivables Management Solutions to the Insolvency Profession, the Invoice Finance Industry, 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 firstname.lastname@example.org
“I have used Glen and his team at Credebt for a number of assignments and have been delighted with the work performed and the results achieved.”
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