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A CVA for a Midlands based security company
We were approached by a Midlands based security company which owed creditors over £350,000, including PAYE/NI arrears of £265,000. We assisted the directors make Company Voluntary Agreement (CVA) proposals which would result in a far better return for creditors than if the company had been liquidated. Creditors accepted the CVA proposals which gave the company and its 100 employees a lifeline.
In the first two years of the CVA the business continued to lose money and accumulated new arrears of VAT totalling £200,000, however by year three, management had turned the business around and back to profitability. With the support of HM Revenue and Custom’s Voluntary Arrangement Service, the company paid the post CVA arrears off whilst maintaining its monthly installments due under the CVA.
The company paid off the remaining sum due under the terms of the CVA some six months early. The CVA has therefore now been completed and the Company continues to prosper.
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A London based book distributor
We were able to assist the directors of a book distributor agree CVA proposals with its creditors. The CVA instalments were fixed on the basis of the directors’ statement of affairs. It was estimated that creditors would receive approximately 33p in the £1 over 5 years. When the CVA completed, preferential creditors were paid in full and unsecured creditors received 19p in the £1. Whilst this was below the forecast of 33p it was significantly above the dividend which creditors would have received had the company been liquidated.
During this Company Voluntary Arrangement, the company relocated from London to Gloucestershire and was then acquired by a company on the south coast.
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A CVA for a Cotswold based Architects’ practice
We were approached by a firm of architects who practised as a Partnership. Following two years of projects being post poned, the partnership owed significant arrears of PAYE and VAT. Were the Partnership to have failed, the Partners faced the possibility of Personal Bankruptcy.
Creditors agreed a Partnership Voluntary Arrangement which enabled the practise to continue.
Contact us for Help and Advice with a Company Voluntary Arrangement
A company voluntary arrangement is one of the main insolvency tools available to an insolvency practitioner for helping companies faced with insolvency. It is used where there is a good chance of helping a business return to profitable trading, with them outcome being significantly better for all parties than a liquidation.
