Long standing OMB operating as a sub contract training provider for colleges. Mounting cashflow problems and stakeholder concern led to the need for urgent professional help.
Summary
Long standing OMB operating as a sub contract training provider for colleges. Mounting cashflow problems and stakeholder concern led to the need for urgent professional help.
Challenges
- Company directly impacted by significant changes in the FE sector
- Its own college customers had massive funding problems to address, and there was a domino affect
- No quick sector fix, but an immediate cashflow issue needed resolving to avoid insolvency
How we helped
- Worked quickly alongside management and incumbent advisors to assess problem
- Came up with options to manage the problem
- Agreed a short term route forwards
- Engaged with stakeholders, notably HMRC
- Advised on contingency planning and gave insolvency advice
Results
- Secured a time to pay (TTP) agreement with HMRC
- Company had a breathing space to finalise a longer term solution
- Refinancing ensued
- Additional management resource introduced
Benefits at a Glance
- Long established company survived
- Rapid and constructive advice delivered solution
- Stakeholder confidence being rebuilt