Voluntary scheme of arrangement
A multi million euro construction company experienced trading difficulty due to a sudden reduction in new contracts. The company had fixed costs which could not easily be reduced. These included costs associated with the financing of plant and equipment which was now surplus to the requirements of the business. This, together with delays in getting paid for work completed, meant the company could not pay its creditors.
Crowleys DFK was asked to undertake a review of the business.
Specifics of Work
Working closely with our client we implemented a voluntary scheme of arrangement with the company’s creditors. This resulted in the creditors agreeing to write off a portion of their debt, which provided the company with time to dispose of surplus assets and continue trading.