Tue, 17 Jul 2012 | ADMINISTRATION
The owner of B3 Cables, B3 Industries Ltd, owed around £30 million to its financial backer ahead of its administration.
KPMG were appointed to organise the administration process for B3 Industries earlier this year in order to deal with the operations of the business and its subsidiaries, Manchester Cables, FTTX, B3 Cables and Tri-Wire.
Tri-Wire's business and assets were sold in a pre-packaged deal to local company Anglia Metal for £1.15 million. However, KPMG faced difficulties with some of the process as it was revealed that the business had “suffered significant pressure on its cash flows”.
A report from the administrators noted: “The manufacturing facilities of both Manchester Cables and B3 Spain had been operating significantly below capacity, which had arisen from declining sales. This resulted in the high fixed overhead base becoming a drain on the group cash flow.”
Credit provider PNC Financial Services introduced KPMG to the group in November of last year in order to conduct a cash flow review just after B3 requested additional funding. KPMG states that it was later asked in February of 2012 to review a turnaround plan which required additional funding that existing backers were unable to provide.
Unfortunately no third party investment was found and although a number of potential investors showed initial interest, B3 Industries was eventually pushed into administration at a time when it owed £30.8 million to PNC, which was secured against assets with a net book value of around £60 million.
Manchester Cables remains on the market while the other divisions of the company are either unsuitable for sale or have already been passed on.
CNC precision engineering company, established over 50 years ago. The Company specialises in small to medium batch high precision milling and turning and has the benefit of long lasting, valuable and important customer relationships. Based within the...
Flagship practice for any portfolio, benefitting from a combination setting (residential and commercial). The vendor is willing to stay on 4+ years.
This is a rare instruction for the sale of a lucrative four surgery private practice offered on a freehold basis.
FREEHOLD
10
|
May
|
North Yorkshire coaching inn on the market for £1.2m | COMMERCIAL PROPERTY
The General Tarleton Hotel and Restaurant, an 18th century c...
10
|
May
|
John Good Group acquires Grimsby shipping services company | BUSINESS SALE
John Good Group has acquired a shipping services provider th...
09
|
May
|
Landsec sells hotel portfolio for £400m | COMMERCIAL PROPERTY
Landsec has sold its entire hotel portfolio, comprising 21 a...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.