Case Studies

Case Study: Exit from administration via a Company Voluntary Arrangement (CVA) to facilitate a company restructure

Our Restructuring and Insolvency team advised that a Company Voluntary Arrangement (CVA) provided an opportunity for this trading company to avoid being dissolved, allowing the possibility of it trading again in the future. It also provided a better outcome for the creditors involved.

Case Study: Administration sale saves business and 26 jobs

Background

Ebor Concretes came into a period of difficulty in 2021 and recognising it needed support before it was too late, its director turned to Armstrong Watson’s Restructuring and Insolvency team.

Partners Rob Adamson and Mike Kienlen were engaged to assist with an accelerated sale of the business through an administration on 17 November 2021.

Case Study: Solvent liquidation - Group of companies

Background 

An existing client of Armstrong Watson was planning to sell their business and had been approached by a competitor with a significant offer for the trade and business. 

They were keen to ensure that the potential return of the capital back to members – all of which were family – was maximised and engaged the services of our Restructuring and Insolvency Team and Tax department to assist.  

Case Study: Project Varnish - Managed wind-down using administration

Armstrong Watson were instructed to assist with the closure of a double glazing business following the settlement of a dispute. The business had been assessing its options due to the nature of the dispute, and was looking at rebranding to move forward. The way forward, including its potential downsides, had been discussed with employees and sales consultants and, following this meeting, many of the self-employed sales consultants took the decision to leave the business.

Case Study: Project Diamond - Sale of business through pre-pack administration

Project Diamond was a company that dealt with IT infrastructure which had encountered some cash flow difficulties, such that the director did not want to continue with the business. However, whilst he no longer wanted to be involved with the management of the business, it was felt that there was a viable business if the historic debt could be dealt with. Accordingly, Armstrong Watson were engaged to assist the director in trying to find a sale of the business through a “pre-pack” Administration.

Case Study: Project Monitor

Advice and support results in additional funding and continued success of the business

Background

Armstrong Watson were approached by a lender as they had concerns about one of its client’s viability. They wanted Armstrong Watson to review the Company’s current position and to provide advice as to the viability of the business going forward. 

Case Study: Compromise Agreements and CVA Offers Lifeline for Business

Background

The Company was significantly geared with indebtedness of over £4m between three banks, with all three having security over the Company’s assets.  There was an inter-creditor agreement between the banks resulting in one of the lenders having priority over the others. 

The senior secured lender had concerns regarding the Company’s viability and had moved the Company into its special situations unit and had instructed an insolvency practitioner with a view to them taking steps to place the Company into Administration.  

Case Study: Company Voluntary Arrangement

Armstrong Watson were approached by a construction company who had encountered difficulties with their cash flow after having encountered a reduction in turnover coupled with encountering losses on a number of larger contracts. The underlying business was potentially sound however the cash flow difficulties had meant that historic liabilities were starting to become a challenge for the business.

With the assistance of Armstrong Watson, a major review of the company's operations was undertaken, which highlighted several matters:

Case Study: Project House

The directors and shareholders of Project House ran a successful IT related business for many years, during which time they were supported by tax and accounting colleagues at Armstrong Watson.  Following an approach from a competitor, and with help from Armstrong Watson’s corporate finance specialists, a sale of the business and assets of the company was agreed and completed.  The aim thereafter was to return value to Project House’s shareholders.

Case Study: Section 110

The principle activity of the company was property investment; holding approx. 170 residential, commercial and agricultural properties, mostly located in the North of England, but with additional overseas properties.

The company was originally inherited by five siblings and from the outset these individuals were clear that they wanted the flexibility to manage part of the company independently of one another so as to best meet the requirements of themselves and their respective families.