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 12:16:32 pm Views: 66
  • #21962
    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.