Daniel Contractors Limited (02900712): administration
- Status
- Administration ended
- Administration began
- 2013-05-15
- Administrators' firm
- Deloitte
- Formerly
- Dreamflow Limited
- Incorporated
- 1994-02-21
- Location
- Cardiff
- Industry
- 42910 Construction of water projects
Why it went into administration
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Competition / price pressure
From the administrators' statement
Dunng the last couple of years, the Group has had to face a number of challenges including managing its finances during a lengthy recession period and the re-financing of its bank facility which led to PNC taking over as the sole provider of funding for the Group This facility was structured as asset based financing and was secured primarily against Group invoices and plant and equipment assets
‘ The facility totalled £9m comprising a £6 5m tnvoice discounting facility, a £2m plant and machinery loan and a £0 5m cash flow loan All Group companies are party to a composite cross guarantee and debenture dated 5 April 2012 in respect of these facilities
Dunng 2012, DCL started to encounter increasing pressure on its cash flow resulting from a number of contractual issues that led to payment delays or losses detrimentally affecting the Group's liquidity The main factors leading to thts position were a significant investment on a bespoke IT solution for a utility contract, low margins on the utility contracts, coupled with the effects of losses incurred following termination of one particular contract and contractual issues then suffered on another contract
Administrators' statement of proposals (2013-07-11) · Companies House register