2e2 investors pull in bigshot beancounters to pore over books
Last FD Simon Burt replaced at troubled integrator
2e2's financial backers have brought several seasoned beancounters into the debt-laden business, The Channel can reveal.
Sources told us that Lynn Mawdsley has gone in as CFO to replace the previous group FD Simon Burt. She describes herself on LinkedIn as a "turnaround director".
It is also believed that Simon Poulton, who is billed as another biz recovery, turnaround and corporate finance specialist - again his words on the biz networking site - has also rocked up at 2e2.
Industry folk reckon 2e2's banking syndicate and VCs brought in the pair to work out a way of dealing with its huge debt. This would likely involve refinancing but some speculated it could lead to the break-up of the group and a sale of the pieces.
As revealed yesterday, sources claim the Berkshire-based integrator broke its banking covenant in December after missing an interest repayment.
2e2 is carrying long-term debts of £270m which cost it £23m in interest repayments alone in calendar 2011.
Channel sources close to the company also claimed that distributors are refusing to supply more kit as they have already exceeded insured lines, forcing 2e2 to approach resellers to secure supply deals with the offer of a margin split.
2e2 has long been the subject of market speculation over senior management's efforts to sell the business, but its debts meant the asking price prevented any deal being done for the entire biz.
2e2 has so far not responded to calls for comment. ®
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