Five companies connected to the UK division of Itmsoil Group have been bought out of administration, saving over 100 jobs.
Based in East Sussex, the Itmsoil Group specialises in the design, engineering and installation of geo-technical components and instrumentation for the construction industry.
Despite its annual turnover of £25 million, the Group has recently struggled financially due to disputes over contracts, resulting in late or no payments as they have been withheld by clients.
Begbies Traynor was contacted by Itmsoil to help with the restructure and sale of parts of the business while the Group tried to resolve the ongoing disputes.
Unfortunately, two winding up petitions were issued against them in January and the administrators felt the best option was to place the Group in administration to maximise creditors’ interest. This led to the appointment of Mark Fry and Kirstie Provan of Begbies Traynor as administrators.
On the 21st January, Highfield Glen and Trinity Fisher purchased the assets and business of the Group and its companies, rescuing 115 jobs. According to reports, the investment business, Rcapital, is also injecting funds into the Itmsoil Group to continue growth in the UK.
Companies of Itmsoil Group involved in the administration were:
– Itmsoil Group Limited
– Itmsoil Management Limited (now called IS Management Receivables 2014 Limited)
– Itmsoil Services Limited (now called IS Services Receivables 2014 Limited)
– Itmsoil Instruments Limited (now called IS Instruments Receivables 2014 Limited)
– Itsmoil Property Limited (now called IS Property Receivables 2014 Limited)
When a company is insolvent, the directors must ensure they maximise the creditors’ interests. In this case, it was felt administration was the best solution, however, it’s important to remember there may be other options, like a CVA. If agreed, the creditors could receive a substantial amount more in the pound over a number of years and therefore be better off. The post Over 100 jobs saved in Itmsoil rescue appeared first on Company Rescue London.