Legal Services
Opusllp
Full Credential Description
The case study focuses on a road haulage business facing significant financial distress due to small trading losses that were eroding its balance sheet and an immediate threat from unpaid tax bills exceeding £100,000. Nine months prior to Opuss involvement, an Independent Insolvency Review commissioned by the companys bank deemed the business unviable, suggesting no possibility of recovery. This conclusion was contested by Opus, which identified the companys unencumbered freehold as a valuable asset that could be leveraged to negotiate new funding arrangements, alleviating immediate cash flow pressures. Opuss tailored solution involved rejecting the recommendations of two insolvency firms that advised the company to enter Administration. Instead, Opus proposed a consensual sale of the business as a going concern, targeting competitors who could benefit from acquiring the company to achieve greater economies of scale. This strategy was accepted by the owners, leading to the distribution of a teaser document that attracted interest from ten potential purchasers. Within two months, a successful share sale was completed to a larger haulage company capable of providing the necessary working capital. The outcome of Opuss intervention was highly favorable: the business was saved, all creditors were paid in full, and the owners received a significant payment for their shares. Additionally, the owners were released from their personal guarantees to the funders and retained on a short-term consultancy basis. The existing invoice discounter continued to provide financial facilities, ensuring ongoing support for the business. This case illustrates the effectiveness of utilizing restructuring and MA expertise to navigate financial challenges, ultimately achieving a better outcome than the initial recommendations of the insolvency firms.