UK's LARGET OFFICE-SUPPLIES-COMPANY ON THE VERGE OF COLLAPSE

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UK's LARGET OFFICE-SUPPLIES-COMPANY ON THE VERGE OF COLLAPSE

 user 2009-07-07 at 12:15:53 pm Views: 71
  • #22090

    http://www.google.com/hostednews/ukpress/article/ALeqM5ggoLV563M-moorONcklO7hEUvdlQ
    VASANTA : UK’s LARGET OFFICE-SUPPLIES-COMPANY ON THE VERGE OF COLLAPSE
    One of the UK’s biggest office supply companies is reportedly holding last ditch talks to stave off collapse and secure vital new funding.Sheffield-based Vasanta Group, which employs around 1,400 staff, has PricewaterhouseCoopers (PwC) on standby to act as administrator if emergency board discussions fail, according to The Sunday Telegraph.It is understood the company has been hit by the withdrawal of credit insurance to key suppliers, which protects suppliers against bad debt and defaulted payments.Vasanta could be placed into administration as early as this week if it cannot gain new funding, it was reported.The group is said to be looking at a possible rescue deal, with private equity group Alchemy Partners thought to have been approached.

    Vasanta is owned by another buyout firm, Electra Partners, which revealed in its interim results for the six months to March 31 that it had written down Vasanta’s value by £28 million, or 95%.Electra said in the results that “the removal of credit insurance led to a significant increase in (Vasanta’s) debt levels with a corresponding decrease in the equity value of the investment”.Vasanta’s principal lender is reportedly part-nationalised group Royal Bank of Scotland.PwC declined to comment and neither Vasanta nor Electra were immediately available for comment.