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A testimonial from a happy client whose company has entered a company voluntary arrangement

The creditors meetings are often a source of worry for the directors, but in practice as long as the creditors have been properly handled and informed in a professional way they rarely turn up to the meeting.  They can still vote by proxy.

After the meeting, the company was officially in a Company Voluntary Arrangement and he sent us the following the email;

Dear Keith

Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.

The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.

Please pass on my sincere thanks to everyone at KSA.

Kind regards  


Ark, Dwell, ModelZone and Internacionale all in administration

This week has been a bad one for retailers as a number have gone into administration or have filed notice of intention to appoint.

The casualties this week have been Ark, Dwell, Internacionale, and ModelZone.

The recent rent quarter day is likely to have been the catalyst although business rates have been blamed this time round as well.

Quarterly rent may be enshrined in the lease agreement but many landlords are open to negotiation and are often willing to accept monthly rental payments with little or no penalties.  They are most likely to have the right to ask for interest on the overdue rent as per the lease but this might make the difference between the business surviving or not.

It is not just retailers that are affected but anyone whose business depends heavily on their property -   Retailers rents are normally a higher proportion of their overheads than other businesses hence they are more vulnerable.

If as a business you feel that your rent is overstretching you then it may be possible to ask for a rent concession.  This is more common practice in shopping centres where the landlord owns the whole centre and helping one retailer indirectly helps the others.   The last thing a landlord wants is empty shops which will detract from the centre as a whole.  If you do ask for a concession make sure you have up to date accounts and proof of your difficulties.

To read more about the recent administrations see our news pages below;

http://www.companyrescue.co.uk/news/modelzone-ark-and-internacionale-in-administration
http://www.companyrescue.co.uk/news/opco-in-administration-in-blow-for-cardiff-construction

RNE Consultancies Limited in Liquidation

KSA Group Insolvency Notices

Meeting of the Creditors of the RNE Consultancies Limited above named will be held at the offices of KSA Group Ltd, Tower 42, Level 7, 25 Old Broad Street, London, EC2N 1HN on 9 July 2013 at 11.15 am
Read the full notice below

http://www.companyrescue.co.uk/insolvency-notices/rne-consultancies-limited-liquidation-notice

Read more about liquidation  on  the what is liquidation page of our site.

Mel Davison Construction has gone into administration

Mel Davison Construction which  carried out repair work for the Northern Ireland Housing Executive (NIHE) has gone into administration.  The firm cited financial pressures for its demise.

The Belfast and Portadown-based company currently employs around 150 staff.

On Monday, around 50 workers staged a sit-in at the premises on the Shankill Road, Belfast, after they were told they were to lose their jobs.

It is understood the appointed administrators are now in discussions with the NIHE to see if the service can be maintained to the NIHE's tenants and to minimise any disruption to contracts.

Mel Davison Construction, which was established in the 1980s, carried out response maintenance work for the NIHE in Craigavon, Lisburn, south Belfast and Shankill.

Law firms in financial difficulty according to the SRA

The Law Gazette recently published an article outlining that the Solicitors Regulatory Authority (SRA) had done research that showed that more than 30 of the top 200 UK law firms are in serious financial difficulty.

The regulator is in what it calls ‘intense engagement’ with 160 firms at risk of failure, of which eight are in immediate danger.

Legal firms have had various challenges recently most importantly from the new Legal Services Act (LSA) that allows non solicitors to own legal practices.  The LSA will no doubt lead to increased competition especially for small high street firms.


Traditionally law firms have not been particularly good at collecting cash in as much of the work is in progress and a focus on billable hours sometimes means that debtors do build up.

So if your practice is, or you are

  • Experiencing cashflow problems?
  • You are concerned about paying your professional indemnity premiums?
  • worried that insolvency may affect your ability to practice in the future?
  • You don’t want to risk the SRA Intervention

If so then you should read our pages on help for lawyers with cashflow problems

We are currently helping a law firm with 20 partners

  • We have negotiated a standstill with the bank £4m (no capital or interest payments)
  • We have negotiated a time to pay their tax with HMRC (£1m)
  • We helped them exit a property
  • NO FORMAL INSOLVENCY used
  • But we built and used a full statement of affairs to show the outcomes for all creditors,  if we did use formal insolvency.  This was particularly helpful in the negotiations.



Consumer Price Index rises to 2.7%

Looks like inflation has come back a little this month following the unexpected fall in April.  The rate is now at 2.7% rising from 2.4% last month.  The biggest contributor to the increase was from fuel and clothing costs.  Food has shown some falls in prices,  can't see it myself as food seems to be ever more expensive in the supermarkets!

The Bank of England expects inflation to remain above its 2% target until early 2016.  Looks like the new Governor of the Bank of England will have a lot to think about.  It seems like only a few months ago that they were talking about negative interest rates!

In other news...

Hearts FC have finally gone into administration.  This has been on the cards for along time following the serving of a winding up petition a few months ago.  The complicated ownership structure of the club has hindered any rescue plan.

The Edinburgh club have debts of £25m - owed to Lithuanian-based companies formerly owned by Vladimir Romanov - who are themselves facing insolvency.

KPMG are handling the case.

HMRC give more time for employers to comply with RTI

Again the HMRC have given employers with less than 50 employees more time to get used to the new Real Time Information (RTI) reporting for PAYE.  If your firm does not pay its staff monthly but weekly, or every 4 weeks then you do not have to report in real time until April 2014.  This extends the previous deadline which was set for October 2013. Currently such companies are just reporting at the end of the month.

The system has come in for some criticism but with over 1.4m employees having their PAYE details reported  and paid online it has been generally regarded as a success.  The figure means more than 83pc of small to medium-sized companies and more than a million micro employers are now reporting PAYE in real time.

Given the Government's past record on big computer projects this is no mean feat.  However, when it is linked up with the universal credit that will be a bigger challenge.

For distressed businesses the implications of Real Time reporting has meant that they can no longer use debts to HMRC as working capital hoping to be in a position to pay back the PAYE at the year end.

If you cannot pay VAT or PAYE then get in touch.




KSA Group Liquidation Notices

Cadre Design Services Limited

A meeting of the Creditors of the above named Company will be held at The Hubworking Centre, 5 Wormwood Street, London, EC2M 1RQ on 28 June 2013 at 12.30 pm

For the full notice see below;

http://www.companyrescue.co.uk/insolvency-notices/cadre-design-services-limited-liquidation-notice

Ivantage Limited

Meeting of the Creditors of the above named Company will be held at The Hubworking Centre, 5 Wormwood Street, London, EC2M 1RQ on 28 June 2013 at 11.15 am

For full notice see the link below

Ivantage Limited Liquidation Notice

Visit our liquidation site for more information

Need to make redundancies but can't afford to??

If you need to make redundancies in your firm but are afraid that you cannot meet the cost then you can get a loan from the redundancies payments office (RPO).  This will be available if the company can show that it will save jobs in the long term but it cannot afford it the payments due to cashflow problems.

For more information read our new page on how struggling companies can afford to make redundancies


Software Business exits CVA early

Southern Based Website & Software Design company

The company accountant contacted KSA Group as he was concerned that the business was in serious financial difficulty and a meeting was held at the company’s premises. KSA was appointed to assist the company

The company encountered compounding financial difficulties due to;

  • Lower than forecast sales
  • High overheads
  • A substantial investment in a  new CRM programme that was not quite market ready
  • A small number of bad debts from insolvent clients and 
  • Incomplete projects.


What was the situation with the creditors?

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