We assisted a Group of manufacturing companies based in the Midlands which encountered trading difficulties principally as a result of its support of and ultimately the failure of one of the subsidiaries which caused certain cross guarantee clauses to be invoked on the remaining members of the Group.

As a result of the failure of the subsidiary, the remaining members of the Group inherited substantial liabilities including significant bank debt and also VAT arrears due to the existence of a Group VAT registration.

Other contributing factors included a significant one off bad debt and also the unexpected loss of credit for factoring purposes on one of its largest companies.

In total, Crown arrears including both VAT and PAYE/NIC totalling more than £350,000 were rescheduled over a period of 12 months with a 6 month review half way through the repayment plan.

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