Business rescue saves jobs

In May 2013 we were approached by the director of a general building and civil engineering company that was experiencing cash flow problems due to incurring significant bad debts. The company had three ongoing contracts of significant value that were at risk of being terminated if the company entered into Liquidation.

There were also significant retention payments due that would have been more difficult to recover in a Liquidation if the contracts were terminated. The decision was taken to use a pre-pack administration sale to transfer the business and certain assets to the director via a newly formed company on the recommendation of an independent valuer.

The jobs of all 10 staff were safeguarded and the new company was able to continue with the contracts.

"having gone through this process, I wish I had known earlier how important it is to make sure you speak to the right people with insolvency qualifications. Thank you for your help"Director (Joinery Firm )