Tue, 17 Jul 2012 | ADMINISTRATION
The owner of B3 Cables, B3 Industries Ltd, owed around £30 million to its financial backer ahead of its administration.
KPMG were appointed to organise the administration process for B3 Industries earlier this year in order to deal with the operations of the business and its subsidiaries, Manchester Cables, FTTX, B3 Cables and Tri-Wire.
Tri-Wire's business and assets were sold in a pre-packaged deal to local company Anglia Metal for £1.15 million. However, KPMG faced difficulties with some of the process as it was revealed that the business had “suffered significant pressure on its cash flows”.
A report from the administrators noted: “The manufacturing facilities of both Manchester Cables and B3 Spain had been operating significantly below capacity, which had arisen from declining sales. This resulted in the high fixed overhead base becoming a drain on the group cash flow.”
Credit provider PNC Financial Services introduced KPMG to the group in November of last year in order to conduct a cash flow review just after B3 requested additional funding. KPMG states that it was later asked in February of 2012 to review a turnaround plan which required additional funding that existing backers were unable to provide.
Unfortunately no third party investment was found and although a number of potential investors showed initial interest, B3 Industries was eventually pushed into administration at a time when it owed £30.8 million to PNC, which was secured against assets with a net book value of around £60 million.
Manchester Cables remains on the market while the other divisions of the company are either unsuitable for sale or have already been passed on.
Operating across North Yorkshire, the company has two divisions, one that provides IT infrastructure and one offering renewable energy solutions, including solar PV systems and electric vehicle charging points.
The group specialises in supplying and installing UPVC windows, doors and conservatories in a wide array of styles. Bespoke bathroom panelling and high-quality guttering products are also provided by the two companies.
The company is a well-regarded specialist provider of hygienic wall, floor, and ceiling cladding systems. To complement its core supply of PVC cladding, the business offers hot welded joints to prevent the build-up of bacteria and can supply stainles...
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