Cheswick Advises on Insolvent Group Restructure

Period January – May 2018

Our medium sized online travel business client needed to restructure its group companies to protect intellectual property and facilitate new investment from institutional investors.

Having been involved in restructuring the trading business six years ago with a company voluntary arrangement, one of Cheswick’s directors was asked to fix the current group structure, now that the CVA had been successfully cleared.

It was raising funding and required a significant new investment in the company in 2018 and this will fund global growth to enable sales of £50 million plus. The company is profitable and debt free. 

However there are four group companies, two have employees, 2 have intellectual property or fixed assets; none are trading well. Going forward the investors were concerned that some faced insolvency if not restructured. Would this impact upon management and distract focus on the growth company? It was enough to stop the investment until resolved.

Cheswick advised on the group corporate restructuring, intellectual property matters, restructuring of each entity, the transfer of staff and assets with a focus on how to avoid insolvency outcomes. This work is ongoing at May 2018.

Are you facing growth problems? Need to raise capital but structure needs to be tidied up? Run out of working capital but have a great business? Contact the experts at Cheswick Capital today on (020) 7416 6677