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FRP Advisory Secures Future of CILT, the National Centre of Languages charity

7 April 2011

Jason Baker and Jonathan Birch, partners at FRP Advisory LLP, the specialist restructuring, recovery and insolvency firm, have secured the future of CILT, the National Centre of Languages charity, following their appointment as Joint Administrators on 5 April 2011, effecting a sale of the business and assets through a pre-pack.

As a result of uncertainly about the future level of Government funding, following consultation with Governors and advisers, it was determined that a controlled Administration process was necessary to protect the interests of all creditors and stakeholders. Without the Government funding, CILT would be left with a substantial pension deficit

With effect from 7 April 2011, under the control of FRP Advisory, the English branch of the charity has been sold to the education charity CfBT Education Trust. The branch in Cardiff, CILT Cymru, which is funded by the Welsh Assembly Government, has been sold to WJEC CBAC Limited. The brands and core objectives of both CILT and CILT Cymru will remain unaffected.

Commenting on the case, Jason said: "With public sector funding being reduced or removed, many not for profit organisations are finding themselves in financial difficulty and, potentially, insolvent. Pension deficits are also a common contributing factor as to why many charities have solvency concerns.

"CILT was affected by a new competitive tendering system for funding in the 2011/12 fiscal year, which meant that its funding was uncertain and not guaranteed. It highlights how uncertainty about funding can significantly affect the solvency of charities and not for profit bodies – and why these organisations should develop a clear plan of how to maintain their income and solvency, at a time when demand for their services is expected to increase."

All CILT Cymru activities will transfer to WJEC CBAC, with the transfer of all staff. The majority of CILT's existing activities will transfer to CfBT. All staff engaged with transferring work will have TUPE rights to transfer their employment to the new organisation.

Jason added, "The restructuring of CILT demonstrates how, despite solvency issues and the difficult economic environment, these organisations do not have to fail and their future can be safeguarded, enabling them to continue to provide valuable services to the wider community."

CILT, regarded as a leading education provider, promotes languages and intercultural education across all sections of society in the UK and overseas. Through its expertise as the National Centre for Languages, the 44 year old organisation aims to influence policy, spread best practice and to support the development of language professionals.

Other partnership organisations will be sought for those activities remaining, however, if no partnerships can be identified these operations will cease. Staff associated with any activities that are forced to cease will, unfortunately, be made redundant. 

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