Case Study 1
We acted on behalf of Powerdial Services when it faced some complex business issues. The parent company (ISD Group Plc) which owned Powerdial Systems Ltd and Powerdial Services Ltd had gone into administration and we needed to act rapidly to prepare the sale of the business and assets, as well as shares of Powerdial Services. Powerdial was a very well managed business, with a first class client base and an excellent reputation in the UK IT Sector and it was vital Powerdial remained intact. There were overseas investors involved which added a layer of complexity to the deal. We needed their finances to facilitate the transaction and there were some difficult negotiation points which we had to address.
We established new bank security covenants and our employment lawyers stepped in to stop staff from the subsidiary who had left the business, trying to take customers with them. By protecting the ongoing trade of the business, we secured a future for the remaining staff and avoided letting its customers down. As a result, the Special Situations Team ensured a co-ordinated approach was made to tackle the issues that Powerdial Services faced and we brought about a successful conclusion.
Case Study 2
We were approached by an entrepreneurial investor who had injected over £1m of funds into a manufacturing business secured by a debenture which pre-dated the Enterprise Act 2002. The business had consistently traded poorly and there was a call for further cash from the investor to stabilise cash flow. The investor was unwilling to compound his losses and wished to unwind his position. We were able to quickly implement an appointment of an administrative receiver who sold the business under a pre-pack receivership sale to a local competitor. This resulted in most of the employees' jobs being saved and a mechanism being implemented to enable our client to have a significant element of his investment repaid through the realisation of assets.
Case Study 3
We were approached by an existing client who had encountered difficulties in their relationship with its bankers who were suspicious that planned restructuring activities of its overseas parent would have a detrimental impact on the UK Bank's position. We were able to evaluate those proposed activities and advise the company of the UK Bank's perceived issues and thereby helped to address those concerns, enabling the UK Bank to agree to the restructuring plan. This enabled the ongoing support of the UK Bank and secured the company's ongoing position.
Case Study 4
An existing client within the retail sector had encountered financial difficulties and had got into arrears to the warehouse holding all of its stock. The warehouse purported to hold a warehouseman's lien which denied the client access to its stock with which to carry on trading. We, accordingly, concluded a sale of the business and assets to a newly formed company owned by the warehouse that had exercised the lien. This led to employees' jobs being saved and the ongoing trade of the business.
Case Study 5
A business had encountered significant and substantial losses which its bankers were unaware of. The business was run by a sole director and the stress levels were intolerable. We were asked by one of the 'Big 4' accounting practices (advising the Bank) to assist the director by engaging as the company's lawyers during a period of ongoing trading which was needed to allow book debts to be collected. It was a difficult period for the director and our support was an integral piece of the jigsaw which made the ongoing trade deliver a successful outcome.
Case Study 6
An existing client had encountered difficulties and needed to implement a restructuring plan. Our lawyers advised on the downsizing of the company's workforce prior to the commencement of a Company Voluntary Arrangement. We followed by assisting the exit of the existing shareholders (based overseas) who sold the shares to the local management team. Our employment, restructuring and corporate finance lawyers worked seamlessly to deliver an exceptional outcome for the client.
Case Study 7
We have advised a significant high net worth individual who had previously negotiated a consensual "work-out" arrangement with his bankers. The bankers had been prepared to work towards the disposal of property assets charged to the bank to ensure that as much of the bank debt had been repaid as possible. The individual ran into difficulties when it came to contemplating the exit route for the company following the last property sale. The bank's preferred route was liquidation which had adverse implications for the directors' overdrawn loan account. We provided advice and assistance to enable an exit route revolving around implementing a Company Voluntary Arrangement which helped the director to avoid the adverse implications of the loan account.
Case Study 8
We assisted an existing client who needed help and support closing down factory premises to save costs by locating all operations under one roof. We recommended and implemented a Members Voluntary Liquidation which helped the company to access £500,000 of paid up share capital and allowed for creditors to be paid in the context of a solvent liquidation.
Case Study 9
We assisted a training business which needed to implement a pre-pack administration purchase but had insufficient working capital to pay legal costs. We were able to be flexible by reducing our scope of work and fee estimate accordingly and secured our position through a personal guarantee from the director. The director was delighted with our advice and assistance and the flexibility we had shown to get them through the difficult situation.
Case Study 10
We acted for a director of a struggling business who sought external overseas investors to provide capital to enable him to purchase the business and assets of a local telecommunications company from administrators. We achieved a sale of business and assets and the shares of a trading subsidiary in a quick turnaround and as we were in a contract race with another competitive bidder, we drove the deal hard and worked into the nights to ensure our client succeeded. We have provided significant post transaction support to the director and have been on hand to deal with difficult issues such as ex-employees stealing confidential business data and managing the obtaining of new banking facilities.