Carter & Carter to call in administrators
Government-backed training company Carter & Carter throws in the towel after lenders shoot down proposals for a 'consensual restructuring'
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:
PwC
to examine accounts at Carter & Carter