A Gorleston offshore firm that had been battling debts of about £5m went into administration after HM Revenue and Customs vetoed a proposed company voluntary arrangement (CVA).

However, the shareholders of CLS Offshore, led by founder David James, have quickly struck a deal to acquire the business which will now trade as CLS Global Solutions.

Mr James says in a statement: “Following the decision to veto the CVA agreement, negotiations were held with investors and a deal was agreed through a brief period of administration.”

The statement adds that prior to the acquisition significant changes were made within the organisation to reduce overheads.

“This included a reduction in personnel and the return of the major shareholders to manage the day to day operations of the business leading to the previous managing and financial directors exiting the business,” it says.

The company has been asked to clarify the position of CLS Offshore’s 100-plus creditors but declined to expand on its statement.

Had the CVA been accepted, creditors would have received about 50pc of money owed over a period of up to five years.

The company, whose workforce had steadily declined during its troubles from a peak of more than 200, also declined to confirm the scale of redundancies.

A creditors’ meeting was told last month that CLS, based in Malthouse Lane, had run into difficulties over two major contracts, putting “great pressure” on the company’s working capital and extending its resources.

In his statement Mr James says: “The new management team including the major shareholders are confident that the business will return to its previously strong trading position.”

Source: www.greatyarmouthmercury.co.uk

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