Business advisory firm Opus Advisory Group has successfully secured creditor approval for a four-year restructuring plan for Fife-based civil engineering business Logan Bruce Limited, safeguarding 21 jobs and enabling the family-owned company to continue trading.
The Company Voluntary Arrangement (CVA), approved on 1 September, follows several months of advisory work by the Opus team after the business faced significant cash flow pressures following the unexpected closure of a site where it had secured a major contract.
Logan Bruce, which provides civil engineering and EV infrastructure works, had invested in equipment and resources to deliver the contract before the project was curtailed, leaving a significant shortfall in its finances. The business subsequently relied on additional borrowing to manage the impact and meet its financial commitments.
Opus was first engaged in May to assess the company’s options. An accelerated sales process was initially undertaken, but when this did not produce a viable offer for the business, the team worked alongside management and the company’s accountants to review its financial position and future prospects.
With Logan Bruce beginning to secure new contracts and developing a stronger pipeline of work, detailed financial projections demonstrated that the underlying business could generate sufficient cash to support a restructuring. Opus subsequently developed a four-year CVA proposal and spent several months engaging with creditors to establish support for the plan.
The arrangement will see compromised creditors receive an anticipated dividend of approximately 32 pence in the pound, while HMRC and the company’s trade creditors will be paid in full. All creditors who voted on the proposal supported the CVA.
Paul Dounis, Partner at Opus Advisory Group and Joint Supervisor of the CVA alongside Mark Harper, said, “This is a really positive outcome for a business which, when we first became involved, was facing significant financial pressure. Our initial role was to look objectively at all of the options available. While we explored the sale of the business, it became increasingly clear that Logan Bruce’s trading prospects were improving, with new contracts being secured and a much healthier pipeline of work developing.”
He continues, “That allowed us to step back from what could ultimately have become a formal insolvency process and instead build a restructuring plan around the underlying strength of the business. A significant part of achieving this outcome has been the engagement with creditors over recent months. By working with them openly and demonstrating that the proposed CVA offered a better outcome than the alternatives, we were able to secure support for a sustainable four-year plan.”
Paul concludes, “Most importantly, the business continues to trade, 21 jobs have been safeguarded, and trade creditors are being paid in full. Logan Bruce now has the breathing space it needs to focus on delivering its growing pipeline of work and building for the future.”
Paul Dounis and Mark Harper will act as Joint Supervisors of the CVA, monitoring the company’s performance and compliance with the arrangement over the four years.
The successful restructuring also reflects Opus Advisory Group’s growing advisory capability in Scotland, supporting businesses to explore restructuring and turnaround options before formal insolvency becomes inevitable.