| Carter & Carter into administration |
|
|
| Monday, 10 March 2008 | |
|
Training firm Carter & Carter Group plc has called in the administrators after failing to find a solution for its debts following the death of the firm’s founder.
UPDATED: Carter & Carter shareholders left empty-handed The firm is a major provider of government-funded vocational training and outsourced services to large corporate organisations and SMEs. It has an extensive client list across a wide range of UK and global industry sectors, including retail, manufacturing and sport. Trading suspended The group's chief executive and founder Phillip Carter died in a helicopter crash in May 2007. Group director of business development Peter Marples and finance director John Green both resigned with immediate effect in October, after trading in the group's shares was suspended. A number of divisional managers have also left the company. Carter & Carter's share price fell from around £12 before Carter's death to 82 pence when share trading was suspended in October. The group issued three profit warnings in October. On 2 October 2007 the firm asked for the trading of its ordinary shares to be suspended with immediate effect pending clarification of its financial position. Carter & Carter said that it has been working with its auditors, PricewaterhouseCoopers, to resolve issues identified during the audit of the results for the year ended 31 July 2007. It added that it has in particular been assessing the recoverability of certain current assets as at 31 July 2007 and has been reviewing the accuracy of certain other revenue streams in the business. Consensual restructuring no longer a viable option Carter & Carter Group PLC (LSE:CART) previously announced, on 15 February 2008, that it was in negotiations with its lenders regarding a consensual restructuring. In December it was £131 million in debt, a sum the board said was “likely to be higher than the current performance of the business is able to support”. The company said this week that it had been informed by the lenders that this consensual restructuring is no longer considered a viable option by them and that negotiations in this regard had been terminated. 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 instructed its lawyers to file a notice of intention to appoint administrators over the company. The company said it would 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. Related articles Related links |
Subscribe to our weekly newsletter for top jobs, news and more
Digg it!
Post to del.ico.us
Seed in Newsvine
Post to Reddit
Post to Furl
Post to technorati
We look at the glass ceiling, and importantly hear from those women that have shattered it on their own terms.