Interesting facts about the case
The business was incorporated in 2011 and provides green energy consultancy services for SMEs looking to enhance their ESG standing.
In addition, they assist manufacturers in bringing new product and technologies to the market through their consultancy service offering.
Reason for Business Failure:
The business was part reliant on maintaining grant funding from the Government to support its R&D investment and green technologies.
The sales and marketing initiatives put forward by the Board, unfortunately, did not come to fruition in order to help the business meet its operating cost obligations.
The business was subsequently declared insolvent and entered liquidation.
Conclusions:
Despite the best intentions of the management team and the sales/ marketing initiatives put in place to increase revenues, this did not come to fruition in time and the business was no longer considered as viable.
The Directors had the foresight to consider Personal Guarantee Insurance as part of their risk management approach. The support services provided by the Purbeck team were able to assist the Directors through the financial difficulties and assist with the negotiations with the lender.
Final Settlements:
Lender agreed at £50,000
£40,000 Total Claim Paid
£10,000 Insureds Contribution
£2,500 Total Paid Out in Fees
Support provided by Purbeck Insurance:
Pre-insolvency business advice.
Personal Guarantee negotiator instructed to help reduce outstanding obligations under the Personal Guarantee
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