Background

TVT Media is an end-to-end content services and media logistics group, specialising in content packaging, versioning and delivery for the international on-demand and online entertainment market. Following the failure of a significant European subsidiary, FRP was appointed administrator of the UK parent company as it was unable to meet obligations under large contracts that were reliant on the European subsidiary. The remaining four subsidiaries, which formed the Asia Pacific and translation business of the group, continued to trade and operate collectively. Given the business-critical nature of the services provided, and with pressure mounting from key broadcasters and media organisations, an accelerated sale process was launched to ensure the continuity of the Asia Pacific businesses. FRP were also engaged to facilitate the continuity of the UK business, and the orderly wind-down and transition of TVT’s UK operations to new suppliers.

Action

FRP ran an efficient sale process to a tight timeline, with a number of key clients indicating that their ongoing relationship with the Asia Pacific business depended on a successful accelerated sale. Approaching a mix of trade and private equity potential buyers, the FRP team and TVT management held discussions with a number of interested parties. At the same time, detailed discussions with key clients of the subsidiaries continued and it became apparent that support from the current management team would be crucial to the ongoing business relationships between the clients and the subsidiaries. As a result, the management prepared their own bid.

Outcome

The shares of the four Asia Pacific subsidiaries were sold to the existing management team, whose proposal offered the most value for creditors and importantly preserved all key client relationships. The outcome saw the secured creditor paid in full.