CVA helps save engineering firm McGeoch Marine from collapse

By GARETH MACKIE
Published on 08/12/2012 00:00

ABOUT 70 jobs have been saved after specialist engineer McGeoch Marine agreed a deal with its creditors to save it from collapse.

The Inchinnan-based firm, which makes doors and accommodation modules for ships and oil rigs, went into administration in October following difficulties at its overseas operations, but joint administrators Rob Caven and Les Ross of Grant Thornton have secured approval for a company voluntary
arrangement (CVA) that will see the firm’s creditors receive more than 50p in the pound over a four-year period.

Caven said: “Through a process of restructuring and reorganisation, we were able to secure the future UK business profits and cash flows for the benefit of all stakeholders in the CVA. The overseas operations will continue, but they are no longer
allowed to be a cash drain on the company.”

McGeoch Marine began trading in 1980, targeting offshore markets in the North Sea and the Far East, and has also carried out work for the next generation of UK aircraft carriers.

Director George Gray said: “While the last few weeks have been very difficult for all concerned, we are grateful to the creditors for their approval of the CVA.

“Creditors will receive substantially more than had the business and assets been sold out of administration.”