Company X manufactures quality UPVC products to the construction industry and had a turnover in excess of £9m per annum and very profitable. The directors appointed a Chairman who was introduced by their accountant, to invest in the business and assist growth.

The problem: After 18 months the business started to have cash-flow problems and after an in depth investigation it became apparent that the recently appointed chairman was diverting cash to other businesses that he owned or had an interest in. The company was operating with an overdraft facility of £750k secured by a debenture on the company assets, which included freehold commercial premises. The debtor ledger stood at this time stood at c£1.2m

The solution: The directors sought professional advice on their options particularly with trying to relieve themselves of the rogue Chairman. Our advice to the directors was to restructure the business thereby alleviating themselves of the rogue Chairman and regaining control of the business. To enable the directors to achieve this we introduced an independent Factoring company which released more than enough money to repay the bank in full, whilst funding the restructured business going forward.