KR8 Advisory Ltd KR8 Advisory Ltd

RESTRUCTURING

In the early signs of a business experiencing financial stress, it is vital that its management team takes action.

Our advisory-led restructuring experts are available to help you explore the full range of options available, providing you with practical step-by-step guidance to the best restructuring option in the circumstances.

We are regularly instructed to undertake the following activities:

An extended repayment profile is negotiated with the different classes of creditors. Typically, we present creditors with a plan, explaining the repayment profile and also a comparison with a formal insolvency process. This would enable the existing shareholders and directors to retain control over the company.

This is a statutory procedure brought in to provide ‘breathing space’ whilst the finances of a business are re-organised. It provides protection from creditor enforcement action for a short period of time, long enough to agree a refinancing or injection of capital. The statutory moratorium allows the existing shareholders and directors to retain control of the company. 

This is a sale process conducted over a short period of time. It often has the dual objectives of securing a purchaser/investor for the company itself, or a sale of the business and assets via a formal restructuring process. Ultimately, there is likely to be a change of ownership of either the business and assets or the shares in the company. However, in some cases the existing shareholders or directors may be in a position to re-acquire it. 

A CVL involves the business ceasing to trade and a Liquidator being appointed to sell all of the assets and distribute the proceeds to creditors. 

A repayment proposal is put to unsecured creditors which results in creditors either permanently writing off a percentage of their debts, agreeing to accept repayment over a period of time (usually 3-5 years) or a combination of both. Creditors are entitled to vote on the proposal and if more than 75% of those voting approve the proposal, then all unsecured creditors are bound by it. Other classes of creditors such as secured lenders and HMRC will have different rights. A CVA usually allows the existing shareholders and directors to retain control over the company.

A Restructuring Plan provides the ability to treat separate classes of creditor differently. It also allows certain creditor classes to be ‘crammed down’, assuming their outcome is no worse than the relevant alternatives available at the time. The plan is sanctioned by the Court. There is a tendency for Restructuring Plans to be used in larger organisations with more complex debt structures. A Restructuring Plan can enable some or all of the existing shareholders and Directors to retain control of the business. 

The Administration process provides the benefit of a statutory moratorium on legal enforcement, for example a winding-up petition by HMRC. This allows the underlying business to be re-organised or sold. In some cases, a sale of the business and assets is agreed before the appointment of Administrators, who immediately upon their appointment execute the sale agreement. This is known as a Pre-Packaged Administration, which from a customer perspective presents a seamless transition of ownership of the business into a new company and therefore can help to preserve customer goodwill. 

Once a company is no longer required or has fulfilled its purpose, shareholders may wish to liquidate the assets and have the funds distributed to them. An MVL is a tax-efficient and solvent means by which to achieve this and ultimately dissolve the company. It is also common for larger groups looking to streamline their group structure to liquidate those legal entities in the group which are no longer required.

Our service explained

Jimmy Saunders, Managing Director, explains the services and benefits clients can expect to receive when working with our Restructuring division.

Why engage KR8?

We know that when a business requires restructuring it can be a very challenging and stressful time for stakeholders. At KR8, we strive to treat all our clients with maximum empathy, compassion and understanding.

With decades of combined expertise, we apply unique perspectives to guide UK businesses through complex restructuring challenges. Our hands-on, pragmatic approach consistently delivers the best outcomes, guided by our values of innovation, courage and unwavering client service.

Get in touCH

How KR8’s Restructuring team can help you

Our team includes licensed insolvency practitioners with many years of experience spanning across all sectors.

They are supported by a team of experts and also have access to a network of over 1,000 professionals within the K3 Capital Group of companies.

oUR eXPERTS

Mike Lennon

Managing Director

Mike Lennon

Managing Director

07920 762 551

Mike is a Managing Director in Restructuring Advisory and has extensive experience advising corporates, lenders and stakeholders with a particular specialism in business advisory, accelerated M&A, buyside advisory and formal restructuring.  

His experience spans a wide range of sectors and includes both solvent and insolvent solutions.  

Mike strives to find simple yet effective solutions which align with stakeholder objectives and result in the optimum outcome, even when the economic environment is challenging for business owners and stakeholders.  

He is a Chartered Certified Accountant and a licensed insolvency practitioner.  

Lauren Wentworth

Managing Director

Lauren Wentworth

Managing Director

07377 372 311

Lauren is a Managing Director in the corporate restructuring practice based in London, but operating nationally.  Lauren has 18 years experience in a number of sectors, with particular focus on property restructuring.  

Lauren works with a number of alternative lenders in providing advice.  She has also undertaken project work for a number of lenders to strategically assess their property portfolios, including NPL loan books and part developed distressed assets. 

Prior to KR8 Advisory, Lauren was a senior director of a UK turnaround and advisory division of a global professional services firm.  

Lauren is an Insolvency Practitioner and holds a MSc in Real Estate Development and is working towards her RICS.   

Jimmy Saunders

Managing Director

Jimmy Saunders

Managing Director

07920 859 063

Jimmy has over 20 years of experience in turnaround advisory and formal corporate restructuring.

His responsibilities include advising lenders, directors and other stakeholders on turnaround options, including IBRs, cashflow support, refinancing and fundraising through to AMA and M&A transactions.

He has advised creditors on Restructuring Plans, led cross-border assignments, advised AIM listed businesses and has overseen the investigation of various contentious matters.
Jimmy is also engaged to provide contingency planning and to take insolvency appointments where required in his capacity as a licensed insolvency practitioner.

Joanne Wright

Managing Director

Joanne Wright

Managing Director

07876 740 982

Joanne leads the Personal Insolvency practice at KR8 having worked in the restructuring industry for 35 years, and spent 25 of those specialising in personal insolvency.  

She has extensive experience advising debtors and creditors, striving to find effective solutions that benefit all stakeholders.  

A large part of Joanne’s time is spent identifying and recovering assets located in the UK and abroad as part of contentious bankruptcy appointments, working diligently in order to optimise returns.  

Joanne is a Licensed Insolvency Practitioner and Fellow of the Insolvency Practitioners Association.  

placeholder thumbnail

Mark Blackman

Associate Managing Director

placeholder thumbnail

Mark Blackman

Associate Managing Director

07818 017 764

Mark brings over 27 years of experience in formal corporate restructuring and turnaround advisory, working closely with clients and key stakeholders to maximise and preserve value.

As a senior director he has advised corporates, lenders and stakeholders in delivering market-leading rescue solutions across a range of sectors including automotive, manufacturing and engineering, and works closely with the asset-based lending community having spent nine months on secondment at a global asset-based lender.

Mark is a Chartered Certified Accountant and appointment-taking licensed insolvency practitioner having passed the Joint Insolvency Examination Board exams in 2009.

Matthew Mills

Director

Matthew Mills

Director

07896 462 618

Matt Mills is a Director in the Restructuring practice. Based in London, but working across the UK, he has over 12 years of experience in turnaround advisory and formal corporate restructuring. 

With extensive experience advising lenders, directors and stakeholders, he has helped clients deal with challenges across various sectors, with recent experience including retail, FCA regulated and real estate sectors. Matt has led several high profile engagements and worked to achieve positive results for clients. 

Prior to KR8 Advisory, Matt was a senior manager of a UK turnaround and advisory division of a global professional services firm.  

Matt is an FCCA-qualified accountant and qualified / licenced insolvency practitioner. 

Tom Bond

Director

Tom Bond

Director

07584 594 799

Tom brings over 13 years’ experience in turnaround advisory and corporate restructuring.

Having previously spent eight years working in the UK turnaround and advisory division of a global professional services firm, Tom has extensive expertise in advising lenders, directors and other stakeholders through challenging situations in sectors including retail, manufacturing, engineering, automotive, pharmaceutical and hospitality.

Tom has led several high-profile engagements and is dedicated to achieving positive results for his clients, including both solvent and insolvent solutions.

Contact us

If you think we can help you, reach out to a member of our team for an initial conversation to explore how we can support your business.

Get In Touch