An engineering client based in the West Midlands has had their CVA successfully approved.
This company had a strong order book and is now restructured for growth. Cashflow problem caused by large loss making contract to supply the Nuclear sector. Unfortunately this contract had to be determined using the CVA, this allowed headcount to be resized & we encouraged management to refocus on smaller profitable works, sales will fall to £5m in 2018.
New funding was supplied by Ultimate Finance. The Ultimate team was excellent to deal with & helped the deal with creditors get approved, by agreeing to provide a written funding offer to the company & KSA as CVA nominee/supervisors. This gave creditors confidence that the necessary working capital was available to the board post CVA approval.
As we had expected the existing (clearing ) bank lender withdrew the funding of the invoice finance facility, upon the CVA being filed & we asked Ultimate to take this facility out. A new £500k facility was provided. 52 engineering, admin and management jobs were saved by our team of turnaround experts.
If you or you clients are thinking about how to restructure your company's debt, overheads, costs & management call 07974 086779 email@example.com