Financial Advisory
Forvismazars
Full Credential Description
The case study focuses on a manufacturing group that faced significant financial challenges, including insolvency on a balance sheet basis. The company had an annual turnover of £10 million and employed over 100 staff. Two major liabilities were threatening its future: a defined benefit pension scheme with an accounting liability of approximately £5 million and historic legal claims from a competitor that resulted in an unsuccessful international defense. Upon engaging with Mazars, a financial advisory firm, a thorough review of the companys financial position and forecasts was conducted. Meetings with key stakeholders were held to explore solvent restructuring options. However, as the pressure on the business intensified, it became clear that these options were no longer viable. Consequently, the companys shares or assets were marketed for sale, but only assets-only offers were received. The administration process was approved by key creditors, leading to a successful sale of the business that preserved the employment of all staff. Additionally, the group had an investment in South Africa that generated royalties. With the assistance of Mazars colleagues in South Africa, this investment was placed into liquidation under the local insolvency regime, resulting in a successful recovery of the asset for the benefit of creditors. This strategic approach not only safeguarded jobs but also maximized asset recovery for creditors amidst challenging circumstances.