MANAGEMENT TEAM BUY VFG BUSINESS FOR £15M

A MANAGEMENT team have bought over VFG’s film and television equipment hire business from KMPG.
In a deal worth £15 million, the rechristened VFG Hire Ltd has secured funding from HBoS, the former bankers to VFG Plc, and ING Barings, which has put the business on a sound financial footing and positioned it for a successful future.
The deal secures the jobs of all 121 staff that worked for VFG Plc.
VFG Hire, as a private company again has appointed Bill Gore as chairman. Mr Gore said: “We are delighted to have acquired the VFG business from the Receivers, which best preserves its underlying value and its future trading commitments. The backing of HBoS who continue as bankers to the business, and ING Barings speaks volumes about the confidence that major financial institutions have in us.
“We would all like to extend our grateful thanks to valued customers, employees and suppliers who have stood by VFG over the course of the last few months. The business now has a financial structure in place, which accurately reflects the needs of the business going forward. We look towards the future with confidence”
Bought from the administrative receivers, the film and TV equipment hire business, VFG Hire Ltd comprises the operational business of the former VFG Plc, together with its principal assets and liabilities, which was placed in administrative receivership on 20 December 2001.
VFG, which had found itself over invested in new equipment, is now in significantly better shape and is looking forward to continuing to supply equipment to the film and TV industries with a high quality service on a competitive basis.
Bill Gore has been advising the company for some time on the restructuring process. By mutual agreement Richard Dunkley steps down as managing director at the end of March. Bob Sutcliffe will be joining the board as a non-executive director and Keith Long as Finance Director. Graham Hawkins and Bill Summers remain as heads of the camera and lighting operations respectively.
It is understood that the company proposes to take the unusual step of assuming responsibility for many trade supplier arrangements entered into by VFG Plc prior to administrative receivership.
VFG’s new management claim that this gesture of good faith underpins their confidence in the company’s future. (SP)