How we helped maximise recovery with minimal debtor disruption
This company supplied and installed signage to a range of stores and small businesses, working under contract to its larger customers and was in difficulty.
The company supplied and installed signage to a range of stores and small businesses, working under contract to its larger customers and was in difficulty. The need to help them manage the position was quickly recognised, especially in view of the highly contractual element of the debt, and all parties – funder, insolvency practitioner, recovery agent and key employees – worked closely together to find a way through.
We ensured we were on site with the client both prior and during the Administration process and liaised closely with the directors and other key stakeholders to better understand the debt and the impact of uncompleted orders on the collection process.
The key issue that we identified
A substantial value of orders was outstanding so we carried out a detailed interrogation of how the contracts had been managed and completed to determine how best to protect from penalties and counter claims. This included the prospect of actually completing some of the unfinished signage install projects.
What we recommended
Based on what we discovered we provided bespoke recommendations on the potential progress of every single project and what was the best approach to adopt with each individual debtor.
The results we secured
By taking prompt and thorough action we managed to deliver the following results:
- A full recovery of funder exposure
- Minimal disruption to customers. They were able to make a smooth transition to an alternative supplier
- Minimal penalty claims
In quick conclusion
We implemented an in-depth, co-ordinated approach, both before and during the insolvency process, maximising recovery for all parties, limited debtor disruption and ultimately protecting the long-term reputation of the business.