Administrators have been called in by Carter & Carter, after banks rejected its last-ditch restructuring plans.
The manufacturing training business had been locked in talks with its lenders regarding a consensual restructuring, but the banks told the company this week that such a move was 'no longer considered a viable option.
'Following the termination of those negotiations, the board has considered alternative options available to it and has concluded that no viable alternative option is available to meet its cash needs in the short term Consequently, the company has today instructed its lawyers to file a notice of intention to appoint administrators over the company,' a statement by the company said.
The embattled company was severely affected by a revenue recognition issues last year. These problems saw the company's shares being suspended, and PwC being called in to conduct a review of its accounting policies.
As a result of its problems it annual report to 31 July 2007 has still not been published.
The futures of 2,000 staff at Carter & Carter will now be in the hands of the accountants selected for the task.
Carter & Carter added: 'The company will seek to work closely with the administrators, the Learning and Skills Council and the Department for Work and Pensions to minimise the effect on learners, clients and employees.'
Further reading:
Comments