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Case Studies

ENVIRONMENTAL NOT FOR PROFIT COMPANY SUPPORTING ECO BUSINESSES GAIN RECOGNITION AND FUNDING

customer background

The Eco business was set up by business leaders in the Environmental sector to lobby on behalf of businesses in the world of Energy Efficiency, Renewable Energy, Recycling & Waste, Land Remediation and Water & Wastewater Treatment.   

The business gained traction and developed to a staff of 90 and turnover of £6M. The Company also won numerous prestigious contracts including the Northern Wind Innovation Project and the Irish Sea Conservation Zones. As funding came from development agencies, the company had to expend the sums first before claiming the expenditure back and delays in getting paid became increasingly frequent.  

The company’s demise came about following a change of government and subsequent cuts to projects. Despite attempts to rationalise with redundancies and change the business focus, cash flow issues caused by protracted audits and paper chasing, led the directors to decide after 13 years of trading that despite looking at alternative business plans, the projections were not achievable with the reduced resources. Their accountants recommended they take advice from licensed Insolvency Practitioners.  

Solution 

The Business Debt Advisor was instructed to provide advice in relation to the overall position.  It was evident that there was a shortfall of in excess of £355,000 to cover debts of £556,000 and plus future turnover was uncertain.  

Steps were taken to place the company into Creditors Voluntary Liquidation. Bev Budsworth was appointed as Liquidator and her team set about seeking to maximise recoveries on projects where sums remained outstanding. The company had office equipment, insurance ans sundry refunds plus a rates refund to recover plus there was a sum of cash at bank.  

approved CVL solution

As Liquidator, Bev Budworth and her team worked hard to recover book debts and other refunds. Total sums realised into the liquidation are just over £241,000. This includes book debts of £85,000, which was around £10,000 better than originally forecast. Creditors have received 22p in the £ and it is anticipated that creditors will receive a further smaller distribution.


Careful consideration must be given to all options available to a financially distressed business. For more advice, fill out our Contact Form and we will be in touch. Alternatively, call our FREE ADVICE LINE on 0800 781 0990.