CTS Group Management Limited (11104097): administration
- Status
- Administration ended
- Administration began
- 2024-07-15
- Administrators
- David Robert Baxendale, Helen Laura Wheeler-Jones, Peter David Dickens
- Administrators' firm
- PwC
- Formerly
- Project DEE Bidco Limited
- Incorporated
- 2017-12-08
- Location
- Leeds
- Industry
- 64209 Activities of other holding companies n.e.c.
Why it went into administration
- Cyber attack / IT failure
- Funding withdrawn / unable to refinance
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- HMRC / tax arrears
- Loss of a key customer, supplier or contract
- Parent or group failure
From the administrators' statement
The Company is a holding company which was incorporated in 2017, along with two other holding companies, CTS Group Holdings Limited and CTS Group Midco Limited, and created a group with a previously incorporated trading entity, Converge. In November 2020 further acquisitions of Sprout and CBS were made and in September 2022 a further acquisition of Tiger Eye was made forming the current group structure (“the Group”). The Group operated from its head office in Daresbury, Warrington, formerly alongside its London office which was then subsequently exited in March 2024.
The Group was a provider of managed service solutions, specialising in cloud management IT and managed service solutions via its trading entities, Converge, Sprout, CBS and Tiger Eye. Tiger Eye is a business focused on document management for the legal sector and therefore trades independently of Converge, Sprout and CBS due to the differing nature of the services offered.
The Group has credit facilities with HSBC IB and Tenzing, the latter of which is also its majority shareholder. HSBC IB has fixed and floating charges securing a term loan and RCF, with c.£14.840m outstanding as at 22 July 2024, with interest continuing to accrue. The Company cross guarantees the debt outstanding. The Group also has loan notes from Tenzing, which has fixed and floating security over the Company and various other Group entities. We are aware that with accrued interest the amount owing to Tenzing is estimated to be c.£39m. Tenzing also acts as security agent in respect of loan notes provided by Hugh Nigel Wright and Mark Fowle with outstanding balances of c.£9.7m and c.£0.25m due to each of them respectively (these amounts included in the figure provided for Tenzing debt). Hugh Nigel Wright is a former director of the Company and other Group companies and Mark Fowle is a former director of other Group companies.
Administrators' statement of proposals (2024-09-13) · Companies House register