Vantis could sell piece of organisation to cut debts

Alex Spence, Professional Services Correspondent & ,}

Vantis, the beleaguered British accounting firm, is holding discussions with intensity investors about offered piece of the organisation to revoke the debts, it pronounced yesterday.

The AIM-listed accountant is additionally articulate to the lenders about restructuring the change sheet. Vantis owes some-more than 50 million to a consortium of banks, together with Lloyds TSB, Barclays and Royal Bank of Scotland.

Vantis said: Negotiations with both investors and the companys banks are at an early theatre and there can be no faith as to the stroke on stream shareholders or the conditions of any agreement that might be reached.

Vantis pronounced that the banks await the companys efforts to find a resolution to the monetary difficulties. Paul Jackson, Vantiss arch executive, said: Were operative tough on shortening the gearing ... Our turn of debt is simply not suitable for the commercial operation and we need to revoke it.

Mr Jackson declined to criticism on the temperament of the investors Vantis is articulate to, but pronounced that the organisation hopes to find a resolution to the debt weight inside of weeks.

Vantis won a high-profile purpose as liquidator of the Caribbean bank at the centre of the purported $7 billion Ponzi intrigue perpetrated by Allen Stanford, the ashamed American financier, dual years ago. However, delays in recuperating resources due to a array of authorised wrangles over carry out of resources related to Mr Stanford have spread out the firms resources.

In February, Vantis pronounced that it had not been paid for the work on the Stanford box for 6 months. Ernst & Young, the auditors, warned that disbelief over when it would pick up any fees had expel disbelief on the capability to go on as a going concern.

Vantis reported a 10.7 million pre-tax loss following well-developed charges of 12 million. This followed a pre-tax loss of 6.5 million for the ultimate full year, on income of 90 million.

Last month, Vantis pronounced the banks had concluded to magnify the tenure of the debts from Jan to May subsequent year. Its borrowings include of a tenure loan of 19 million and a revolving credit trickery of 34.6 million, according to regulatory filings.

There was a little great headlines for the organisation this week after it reached an agreement with Ralph Janvey, the US receiver in the Stanford case, who has fought a array of authorised battles opposite Vantis. Under the deal, that contingency be concluded by the Antiguan court, Vantis will take shortcoming for resources located in the UK and Antigua and Mr Janvey will have carry out of those in the US and Canada.

Vantis was assured that the agreement would concede it to proceed returning supports to creditors, nonetheless $100 million value of resources related to Mr Stanford in the UK are still solidified underneath a justice sequence obatined by the US Department of Justice, that is looking carry out of the funds.

Mr Jackson said: Its critical that we get on and begin realising resources for the good of creditors. But we are creation progress.