Troubled accountancy group RSM Tenon has disposed of its Individual Voluntary Arrangements business to financial services firm Grant Thornton.
RSM Tenon, with a market cap of only £17m, has been attempting to cut debt, which at its last year end stood at £65.7m. It will receive net cash of around £7m from the disposal.
Lloyds Banking Group has committed facilities of £88m to RSM Tenon until October 31st 2012 and investors will be keen to get an update on how negotiations are proceeding when the group announces full year results for the year ending June 30th 2012 on October 17th 2012.
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At the time of its third quarter interim management statement on May 17th, the company revealed: "In part as a result of funding the upfront costs of our cost reduction programme, which are estimated at £6m, our headroom against our borrowing facilties remains limited. This will continue until we start to see net cash from the cost reduction programme, which is expected from the second quarter of our next financial year.
CM
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