Facts
Background
A specialist building and projects company had traded successfully for 10
years but had over spent on R&D on an innovative product which was
attracting early sales interest. This put pressure on cash flow which
became acute when a supplier let the company down on a large contract and the
company had to step in and spend £100,000 to put faulty work right.
Problem
The sales pipeline was strong but the company had no cash and was forced into
liquidation when HMRC rejected a Time To Pay proposal. The director’s
family set up a NewCo which bought the business and assets and the
directors wanted to keep the cars that had negative equity. But the main dealer in house finance company had other ideas and insisted that the vehicles
be returned. At auction the vehicles would have sold for less than the
outstanding finance leaving a claim of c£15,000 under the PGs (although
the new company was willing to take the finance agreements on with no loss).
Solution
We were approached by the former directors/guarantors to negotiate with the main dealer vehicle finance company. That proved impossible but we
introduced a specialist finance broker who arranged replacement finance
within three days. The main dealer vehicle finance company was paid in full
with no claim on the PGs.
Difference
Our relationship with the former directors made us the obvious people to help.
We didn’t take no for an answer. It didn’t take much time and we made no
charge – it is all part of the service.