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Latest winding up petition case study

At KSA Group we have been able to help companies that have had winding up petitions served on them.  This is usually the last resort option of a creditor looking to recover a debt.  It is best to ACT BEFORE it gets to this stage but in the event of your business receiving one we can help - IF you contact us immediately.

Please look at our case studies page which shows that we can stop or challenge petitions to wind up your company.  However, mainly we persuade creditors to accept our rescue plan using a CVA or by obtaining Validation Orders.

Winding up petition case studies

The latest case study about a media firm with £2.2m turnover and £600k of debt highlights the fact that if you act quickly the costs for saving the company can be lower.

Mouchel looking at pre pack administration

Update.  1st August 2012.  Mouchel go for a debt for equity swap

Mouchel Group,  one of the country’s largest support services groups employing 8,500 people and
which manages traffic on the UK's motorways through roadside screens  has been  in last minute talks with its bankers, according to reports.  This in a bid to stave off administration as it groans under a debt pile of £180m.  Talks with the major lenders to the group – Royal Bank of Scotland, Lloyds and Barclays – have been underway for months.

Mouchel, has seen its value fall in the past 12 months. The company is now worth under £3m. This is a dramatic fall having been valued at more than £500m in 2008 and rejecting a £330m takeover bid from VT Group in 2010.

A ‘ pre-pack administration ’ is being looked at, but a debt-for-equity swap with the banks, where the lenders take a stake in the group is the most likely option.  At an operating level the group is seen as being profitable, and it is a sizeable business, so it will have a future in some form or another.
Mouchel has an order book of £1.1bn.  However it is the onerous terms on the company debt that is causing the problems.

Retail insolvencies buck the improving insolvency trend

According to a report by PricewaterhouseCoopers, the retail sector is suffering a big rise in insolvencies in the last 3 months when compared to last year.  This is not surprising considering the weather and the dampened consumer confidence.  426 retailers collapsed in the second quarter compared to the 386 a year ago.  Of course, Clinton Cards was the biggest company to fail but a number of these have been bought.  

Across all the other sectors there has been an improvement in the insolvency rate with, 15.5% fewer construction firms had gone bust than in the previous quarter, and 8.4% fewer manufacturers.  This has led to an improvement across all sectors of 3% to a total of 4000.  It should be noted that this is an insolvency rate of less than 1%.  In the early nineties the insolvency rate was some 2.5%.  

Again though, this construction data is not looking at the year on year figure.  Construction is having a hard time this year with the cutting back of infrastructure building and new house starts.  As such it does appear to be dragging down the GDP figures.

If you are struggling then you should seek to act early.  Take a look at our cost cutting guide pages and how to get  time to pay your VAT or PAYE bill 

The Olympics have started today

So let's get into the spirit of it all and get behind Team GB!  The flame has passed through Berwick-upon-Tweed and our office manager, Marie Moody, has held the torch!  

I would have liked to have put on a picture of the Olympic Rings but we don't want to upset anyone...

Trip into London so far was easy and roads quiet as people heeded warnings to not drive.

GDP figures show 0.7% decline

It wasn't a huge surprise, but GDP fell by 0.7% in the second quarter of the year. However, analysts expected a fall of just 0.2%  Extra bank holidays are said to have played their part and it is only an estimate at this time. This will put pressure on the Bank of England to increase the measures to stimulate the economy known as quantitative easing. The coalition will also be facing pressure to find ways to stimulate growth which seem to be very elusive at the moment

The GDP figures have been widely criticised as being misleading and not accurate.  Unemployment has fallen and business confidence has held up reasonably well. What is more the insolvency statistics are showing an improving picture. However, the general consensus is that the economy is flat.

What is happening in retail?

For anyone in the retail sector these last couple of years has bee a difficult time to trade through.  Consumer confidence has been low, input costs quite high ( although there has been some relief as inflation falls back ) and sluggish pay settlements for the average shopper. 

The BBC have a good page that is being updated on all the latest retail collapses.  You can read it here  http://www.bbc.co.uk/news/business-13977255.

If you are a struggling retailer then perhaps a CVA can save your business. Take a look at our retailer rescue pages or give us a call on 0800 9700539

Company Rescue Cookie Policy

So we have to do as we are told and have put a cookie policy on our www.companyrescue.co.uk website.  We simply use cookies to track visitors and returning visitors. We have a simple cookie policy that can be read here. 

The EU I think has other more important things to worry about now but there you have it.

7 day warning letters being issued by HMRC

We are hearing about more companies that are not able to keep up with their time to pay payments and HMRC are beginning to issue 7 day warning letters of a winding up petition.  However, all is not lost if you have been refused time to pay VAT or PAYE.

Just because enforcement say you have to pay all the tax this does not mean to say that HMRC will not negotiate.  See our page on HMRC Enforcement and the Voluntary Arrangement Service or VAS

A CVA can be used as a rescue tool to allow a proportion of the unsecured debt to be paid off over time, the remainder is written off. If you start to make more money than envisaged then in the CVA proposal a higher dividend can be paid the creditors. So basically you are not "pulling a fast one" over your creditors and your reputation should not be damaged. Besides, in order for a CVA to be approved you will need the backing of 75% of the creditors (by value) anyway. Another plus is that there is no statutory requirement for you to tell your customers that you are in a CVA, which is not the case with administration

What about tendering?

We can arrange for a hive down that allows the company to tender for contracts. See this page on hive downs:


KSA Group Insolvency Notices

Unite Security Limited s98 Liquidation Notice

Meeting of the Creditors of the above named Company will be held at the offices of KSA Group Ltd, Tower 42, Level 7, 25 Old Broad Street, London, EC2N 1HN on 1 August 2012 at 2.15 pm


The Green Drinks Company looking to exit administration via a CVA

The Green Drinks Company is looking at a company voluntary arrangement (CVA) as a way of exiting from administration it has been reported.  The company supplies a vending machine system using pouched beverages.  The system needed much investment in order to establish themselves in the market and key investors were not in a position to invest in the business. Administrators at Milsted Langdon in Bristol were appointed on 24 May 2012. The crunch came when there was a "health and safety issue" with the vending machines that were in place and they would have needed addition parts fitted.  Given the financial restrictions it was deemed that this was not feasible and the business had to cease trading.  A total of £3m has been invested in the company.

An estimated outcome statement reveals that, on 16 July 2012, the syndicate which provided bridging investment is owed £100,000 as the company's secured creditor.

Preferential creditors are owed £12,205. A total of £2,724,568 is owed to unsecured creditors, including £606,889 to trade creditors, £93,000 to employees and £24,679 to HM Revenue & Customs. A £2m loan is also owed to Finasucre.

Despite this report we are unsure how this could work as if the company has stopped trading then  it will need to start up again and generate revenues to pay the creditors. Of course, we do not know the exact position of the company but it may be that the "health and safety issue" has been resolved at minimal cost. 

Read about how a company can exit and administration via a CVA

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