A service sector client with a turnover of £140m and up to £16m of invoice finance debt approached us at crisis point after losing two significant customers amounting to £50m of annual turnover.
Our initial focus was on short-term stability achieved by identifying and minimising the cash requirement, which was met by negotiating extended credit terms with key suppliers and securing ongoing bank support.
Having stabilised the business, our restructuring specialists quickly identified that it was viable and we were able to develop a credible restructuring plan which would lead to a profitable and cash generative business. This allowed us to obtain increased working capital funding through a refinance of the senior debt facilities and to raise mezzanine finance from a private equity house, thereby providing a long-term funding solution.
Our involvement preserved value in the business and employment, delivered a stable financial structure and enabled management to regain control.