Audio Visual Company

Our client, an audio visual equipment hire and sales company based in London, was introduced to us by their solicitor.

The Company had suffered due to a poor investment in a US subsidiary which had since been closed. As a consequence it was in need of additional working capital which its bank was not prepared to provide. The Company had constraints for further credit with many of its Hire Purchase creditors – critical to its day to day operations – and had also recently had to negotiate a time to pay arrangement with HMRC. With increasing pressure from the HP creditors there was a real risk of insolvency.

ReSolve proposed a refinancing of the Group’s primary debt facilities (c£1 million) and the provision of a much needed working capital facility of up to c£750,000 to give the Company the time and resources to undertake the restructuring necessary to see through its recovery plans.

Following ReSolve’s intervention the Group avoided insolvency. Management were able to commence the necessary restructuring of the Company, including a rationalisation of staff and closure of a leased site that was no longer needed. HP creditors were brought up to date and payment of monthly and quarterly repayments recommenced.

Having stabilised the Group, management started the search for a longer term lender and nine months after completion successfully repaid ReSolve in full together with all costs and charges.

'We were pleased to be able to save this viable business from insolvency and provide a workable business solution along with much-needed capital, to enable it to restructure and recover. We wish them every success in the future.’

Mark Supperstone, Managing Partner, ReSolve