TTE Technical Institute is a registered charity and education provider, also operating as a leading provider of technical training to the oil and gas, manufacturing and engineering sectors across the UK and internationally. The group had experienced a reduction in turnover in recent years, particularly as a consequence of the delay in an international contract, compounded by a significant deficit in its defined benefit pension scheme. The deficit reduction contributions could no longer be met, and while the Board had reduced costs wherever possible, cashflow forecasts showed a funding requirement of c£500,000 to cover ongoing operating costs. The company was unsuccessful in attempts to raise additional finance, and initially engaged FRP to advise the Board on other fundraising options.
Having explored and exhausted alternative funding routes, our team consulted with key stakeholders regarding the prospect of a Company Voluntary Arrangement (CVA). However, when the Pension Protection Fund (PPF) – the largest creditor – confirmed they would not support a CVA, we began an accelerated mergers and acquisitions process (AMA) and chaired discussions with a number of interested parties, with a view to securing a sale of either the trading subsidiaries or the assets and liabilities of the group of companies. Despite the withdrawal of one purchaser shortly prior to completion, the team were able to negotiate a significantly increased offer with a suitable alternative buyer.
The business, its assets, and the share capital of its subsidiaries were sold to Middlesbrough College, enabling the business to continue operating as a going concern. The team continued to consult with the PPF throughout the process to ensure they supported the proposed sale, and also secured agreement from the Education Skills Funding Agency for the transfer of the funding agreement to the purchaser. The sale of the business secured future training for 400 students, the rescue of the group’s subsidiary companies, the TUPE transfer of over 100 staff, an enhanced realisation of the company’s assets, and the survival of the group’s trading operations.
The number of students whose training was secured through the successful sale of TTE Technical Institute.