Project Value
- This was a second generation business which was failing owing to weak management. The Company's ‘crown jewels’ had been sold, but costs remained high and losses had increased.
- The situation became critical when a winding up petition was presented and bailiffs attended the Company’s offices. Initial indications suggested a very poor return in the event of failure.
- Hilco acquired the Lender's position. This gave certainty of recovery to the Lender.
- Hilco negotiated an informal agreement with the unsecured creditors to pay them 45p in the pound. This recovery compared to a likely zero recovery in an insolvency scenario.
- The business was successfully restructured and it now appears likely that value will be returned to the company’s shareholders.
Project Mountain
- The Company was faced with a winding up petition and the Company’s bank was in the process of appointing Administrators.
- Hilco discharged the Company’s liability to the bank in full and engaged in dialogue with Company’s creditors. This afforded the Company some breathing space to continue negotiating with an interested party.
- The Company was sold a week later and insolvency was avoided, resulting in all parties being paid in full.