Workouts/Informal Arrangements
Sometimes, particularly where a company is involved in a high profile sector and any hint of insolvency would effect a wholesale termination of contracts or loss of clientele, an informal arrangement may be feasible. In assessing the suitability of an informal solution, much would depend on the causes of the insolvency, but if for example it was due to a lack of financial control, the company otherwise had extremely good prospects and good cash flow, then as Sterling Ford has accomplished for clients, it could be possible to reach a negotiated informal agreement with the company's creditors, so that over a three year period all creditors would be paid in full.
As part of the brief, we were able to reassure the key clients that their caterer was in safe hands and we took over the entire financial operation of the company, putting in very strict financial controls to ensure that the client could meet both its every day commitments as well as make monthly repayments to its old creditors. We are pleased to confirm that at the end of the three year period all past creditors were paid in full, the financial and accounting function was transferred to the client's accountants and the client restored to financial health.