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This transatlantic B2B services company had a UK subsidiary facing insolvency with 1.5 times annual revenue in creditors and costs exceeding income. Engaged by the owners, BM&T worked with local management to put in place a ground breaking Creditors Consensual Composition covering over 30 creditors to avert insolvency. This avoided the loss of critical clients and new business and ensured a potential 100% recovery for the creditors and the survival of the business.BM&T installed budgets, cost controls and selective invoice discounting to return the business to positive cash-flow in 2 months with profitability achieved in 4 months. A major new business contract was won, worth £20m over three years, which would have never been awarded if the company had entered any formal insolvency process. In addition, BM&T worked with the owners to install a corporate strategy for expansion and refinance $1m of debt into a private placement.
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Notes, insights and reflections from Matthew, one of our directors and turnaround experts, as he works with companies during Lockdown.