Case Studies

Bank – default on loan, subject disappearance

Our client, a Middle Eastern Bank, sought to recover a $100 million loan made to a Saudi individual (the “Subject”), secured against their numerous businesses.

The Subject had defaulted on payments and subsequently ‘disappeared’. In order to pursue repayment of the loan, the bank began examining their financial background, and discovered that their businesses were asset-stripped shells.

Consultancy business – investigation in support of court defence

Our client, a UK consultancy (“the Vendors”), acquired a smaller consultancy (“the Acquisition”) for £3 million; half paid upfront and the balance paid after satisfactory completion of an earnout measured on sales revenue.

The sales of the smaller consultancy declined towards the end of this period, dropping even further from £1.6 million per annum to a mere £600,000 the following year.

Sale of mine – MBO agreement not upheld

A European Private Equity fund sold a Czech coal mine to management, subject to an agreement that if they on-sold it within one year of the management buy-out (MBO), the fund would participate in the uplift in value. The MBO team sold 40% of the coal mine 14 months after the MBO.

Executive business travel company – fraud

In 2012 a travel company was haemorrhaging cash, despite what appeared to be healthy margins, on a turnover of £20 million GBP.  An internal audit was carried out that highlighted hundreds of non-reconciliations and unusual movements of cash which had taken place for over three years. Capcon Argen was called in to investigate.