Insolvency practitioners

If you are an insolvency practitioner appointed as administrator of a failed finance company, you’ll know there are three questions you need to answer:

  • Can the failed finance company’s portfolio be sold at a fair price?
  • Would a work-out provide a better return for creditors than a sale?
  • Do you have the internal resources and experience to effectively work the portfolio out?

It may be that outsourcing the portfolio work-out is the most viable solution.

With 20 years’ experience in managing work-out programmes for leading UK corporate recovery firms, LPM Outsourcing is a tried and tested partner who will take immediate control of the portfolio and secure the best possible cash return for its creditors.

A seamless service Upon instruction, we will take immediate control of your portfolio so you won’t experience any interruption in the cashflow from the portfolio.
Speed of data transfer If data transfer is necessary, we will complete this within six to eight weeks of taking control.
Low initial costs All you need pay for at the outset is the data transfer and system configuration.
Controlled running costs Running costs are always tailored to portfolio size, condition and run-off profile. You won’t have to pay a ‘one cost fits all’ price.
Immediate pool of resources From day one, a team of highly experienced staff will be available to you, ready and waiting to take over.
A bespoke system All the necessary processes and procedures will be set up for you, carefully engineered to meet the needs of the portfolio.
Rigorous enforcement procedures Should a customer default on their agreement, we will have rigorous collection procedures in place from day one
A guaranteed level of service Our emphasis on service delivery means you will receive high levels of performance and operating standards, written into our contract with you.
Reduced risk We have robust, tried and tested disaster recovery procedures in place to ensure business continuity.
Client:
KPMG
Service delivered:
Portfolio work out programme
Gross receivables:
£47 million
Business volumes:
4,700 customer agreements

The client’s requirement:

KPMG was appointed administrative receiver for an insolvent finance company which had a general-purpose portfolio consisting of cars, commercial vehicles, plant and office equipment.

The portfolio was in a highly distressed condition with serious documentation shortfalls, fraud and substantial aged debt levels, bad debt losses and future bad debt exposure.

Our client's objective was to maximise portfolio cash returns for the funders and other creditors.

LPM Outsourcing’s programme of action:

  • We were appointed to provide a ‘work out’ service for the portfolio. Our first job was to place a collections task force into the finance company premises.
  • We then undertook a portfolio data conversion to our own system and the programme was relocated to LPM Outsourcing’s premises within three months.
  • On completion of this intensive four-year work out programme, the funding banks and other creditors received 100% payout - against the original estimate of 60p in the pound.