Business recovery case studies

Case Studies

Here at BCIA Recovery & Turnaround we're proud of all the work we've carried out in partnership with our clients, and on this page, you can find a variety of case studies which display our expertise in insolvency and finance services.

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Plastics Manufacturer (North of England)

The group of companies had run into difficulty since one entity had suffered significant loss of contract and was being propped up by the holding company. The group was concerned that any formal insolvency would severely damage its impeccable reputation with its customers and lead to competitors stepping into their shoes.

The group engaged BCIA to carry out an Independent Business Review and advise the board on what action would be appropriate. The problem company had an aging workforce who did not have an appetite to continue to fight in the industry and so BCIA advised the group that the company was indeed insolvent and that it could no longer continue to trade. BCIA arranged everything pertaining to the appointment of a liquidator, who subsequently received the best bid for the goodwill and assets of the company from the group.

The group purchased the contracts of the company from the liquidator and reduced its overheads by bringing all operations under one roof. The Directors faced no criticism for their actions since they were advised exactly how they should conduct themselves. BCIA contacted all creditors to inform them of the situation, and all critical decisions were documented and formal advice acted upon. The ultimate result is that the group company looks set to declare healthy profits this year, staff who wished to retain employment did so, and the company's reputation with its customers remained untarnished.

"We were extremely concerned that the fallout with one of the group companies could cost us everything - with BCIA's skill and assistance we were able to properly deal with the issues and correctly manage the process to protect the value within the business for the benefit of creditors whilst maintaining confidence and reputation with the customers"

Insulation Company (Sheffield)

The company had suffered from an irreparable breakdown in relationship of the board. The company also faced huge creditor pressure and was insolvent on the basis that it could not pay its debts as and when they fell due. The company was facing countless legal actions and was on the brink of implosion.

BCIA were consulted urgently and recommended that a turnaround director was appointed given the severity of the situation. With the majority support of the shareholders the turnaround director, with significant assistance from BCIA, was able to lead the company into a CVA paying 100p in the £ over 5 years. This has rescued the relationship with the creditors and customers alike, most of whom are blue chip. BCIA were instrumental in negotiations with HMRC who had threatened to wind up the company almost 6 months prior to the CVA being accepted - the delay being caused by the vast amount of restructuring necessary.

The company continues to trade in a CVA and forecasts profits which may well enable them to buy their way out of the arrangement before the full term of the CVA. Despite the falling out of the shareholders, they all stand to make a significant amount of money once creditors have been repaid in full.

"When we engaged BCIA, the company was facing huge pressure from shareholders and creditors alike - after months of battling with the business, we managed to enter into a CVA, refinance the business whilst in a CVA and look set for a period of fair trading before trying to grow the company - a job well done"

Construction & Development Company (Midlands)

The company had a CCJ (County Court Judgment) as a result of very tight cash flow which had been caused by a development project turning sour. The bank was owed close to £2million and had taken personal security from the directors in the amount of £250k. The directors had continued to sustain the development as best they could at their own expense but the bank's patience wore thin and eventually they issued claims under the guarantees.

BCIA were engaged to lead the negotiations with the bank. Whilst the bank could have sought to appoint LPA receivers, they were encouraged not to since an LPA receiver could not have realised the asset to the value that the directors could. BCIA worked with the bank's solicitors to agree a complex settlement on the additional value that the directors could add to the sale price, based upon the bank's agents' advice.

Subject to the sale concluding (which remains imminent), we estimate that the amount claimed under the guarantees will not exceed £15k. Not only that, but the company maintained their relationship with the local council, the bank and their standing in the local community.

"BCIA worked as part of a team with the directors and guided us through what was a very tricky and intimidating situation - we are delighted with the results."

F&EV Linford Ltd - Construction Company (Lichfield)

The company had suffered from management fallout and shareholder dispute for a number of years. The group company had recently entered into administration with the result that F&EV were held liable for millions of pounds of cross-guaranteed debt. As one of the longest standing construction companies in the UK, the advice they received from their lawyers was to follow the group company into administration - advice which now appears clearly flawed.

The company were introduced to BCIA who immediately engaged with the bank and several major creditors since there had been a winding-up petition on the company. The company entered into a standstill agreement in respect of the petition debt to enable them to negotiate payment terms with creditors and restructure the business. The company had also been left with in excess of £5 million in unpaid pension contributions as a result of the group company's insolvency. BCIA engaged with the trustees of the pension scheme to investigate the amount, negotiate a true and fair settlement amount based on historic employment and realise the security underpinning the liability to satisfy the trustee.

The company continues to trade to date and continues to repair its balance sheet - whilst there is still a long way to go, it is fair to say that they would not be where they are now without BCIA's assistance and commitment. They met with several large firms of insolvency practitioners and reputable lawyers who sought only to enter the company into a formal insolvency which would have seen creditors suffer, a longstanding company fall, and local employees made redundant. The company remains confident of making a full recovery although there remains a lot of work to be done.

"We could not trust the advice we were receiving and believed wholeheartedly in the company and its ability to recover. BCIA engaged with us on a contingent fee arrangement and committed as many hours as were required in order to make good of the situation. We remain confident that the company will recover fully and continue to trade for many years to come - BCIA's advice has been priceless."