E-Post Media - Case Update

Hugh Jesseman and William Batty of Antony Batty & Company, the joint administrators of E-Post Media, have filed their proposals outlining what led the post-production company to enter administration and the pre-pack sale that had to be completed on an urgent basis due to anxiety amongst clients following the filing of a notice of intention to appoint administrators (“NOIA”).

The Soho London-based company was established in 2004 and grew into one of the leading post-production facilities in the UK, offering grading, sound and voice over facilities used by the likes of Netflix, ITV and the BBC.

In common with others in the sector, the company suffered from significant debts which built up during COVID. These issues were exacerbated by the writers’ and actors’ strikes in the US in 2023.

In early 2024, a deal was nearly reached to sell the business to a third-party private equity business looking to invest in the post-production sector. Unfortunately, despite negotiations taking place over several months, a deal could not be agreed within the necessary time.

As losses continued to accrue, cashflow pressures reached a level which was not sustainable. The company engaged Antony Batty & Company in late May 2024 and a NOIA was filed. A sale had to be completed at the earliest opportunity because it was becoming increasingly difficult to trade during the notice period. The day after the NOIA was filed, CreditSafe issued a “high risk” warning on the company which led to anxiety amongst major clients. A pre-pack sale was determined to be the best course of action in order to avoid the significant reputational damage that would occur if the business had been closed with live ongoing projects.

An accelerated sale process was conducted resulting in two offers — one from an unconnected party which offered £68,000, and one from Mojo Bridge Limited, a connected party which offered £250,000, an amount in excess of the willing buyer valuation. This offer was determined to represent the best available outcome and was accepted.

The company entered administration on 12 June and the sale was concluded shortly thereafter. Over 60 jobs were saved.

The joint administrators’ progress report can be found HERE. They have been assisted by ITC Valuers and Francis Wilks & Jones.