As a result of the dramatic fraud and failure of Arena Television many lessors in the sector required accelerated and more detailed asset audits to understand asset management processes and ultimately, the existence of the assets.
The Company owned a hire fleet of over hundreds of items of broadcast, film and sound equipment as well as 9 OB trucks.
There were a number of challenges in effectively performing this work as a result of:
In performing our work we interrogated the asset management system, inspected equipment coming on or off hire and verified a sample of the hire equipment in the warehouses.
Ultimately, the Company had an excellent work force who had the benefit of a comprehensive and robust asset management system resulting in an accurate audit. This work and a detailed valuation enabled the lender to increase and enhance the available credit lines.