Licensed Insolvency Practitioners With National Coverage
Winding Up Petition Case Study – Contract Delivery Company in London
Winding up petition case study - Contract Delivery Company in LondonThis is a case study where we were able to help a business that had a winding up petition issued against it.The business was a contract delivery and transportation services company based in London, specialising in delivering bread and bakery products for bakeries to retail customers.The company’s accountant and adviser contacted KSA after reading the website. A meeting was held between the director: and KSA Director: Wayne Harrison, at Tower 42.KSA Group were appointed to assist the company on 6th November 2009.By 30th November 2009 the annual turnover was £340,863 which is consistent with the previous year of £333,806 however losses were made of £116,263 and £74,745 respectively.The company encountered financial difficulties due to being under capitalised from the outset and from suffering the high maintenance and repair costs of servicing its fleet of delivery vehicles: mainly due to the fleet of second hand vehicles and engaging sub-contractors to make deliveries. This resulted in losses being made in 2008 and 2009. As a result, arrears to HMRC had occurred.A payment plan was submitted to HMRC and was rejected. HMRC subsequently issued a Winding Up Petition, which presented at court on 12th October 2009 and was served prior to KSA's appointment.What did we do?Read the whole case study to find out
ReadCVA Case Study – Scottish Recruitment Company
One of the directors of a Scottish registered company, trading since 1994 and now trading from premises in Edinburgh, contacted and then appointed KSA in June 2009 to assist with the preparation of a Company Voluntary Arrangement (CVA) to the company’s creditors.The company provides temporary and permanent personnel placements across a number of sectors including industrial, construction & property, manufacturing, technology, scientific and information technology to name but a few.The company mainly operates in the central belt of Scotland but has also provided personnel around Europe, Iraq, and other areas of the world.Over time the majority of the company’s business related to the construction and property sectors, making up approximately 40/50% of the company’s turnover.The company had invested quite heavily at the end of 2007 and beginning of 2008, taking on larger offices and recruiting 17/19 new sales team members. Almost half of the new staff were recruited to focus on expanding markets like house building and consultancy recruitment.During 2008 the company started to feel the early effects of the current economic downturn but similar to other companies the company was unaware of the drastic effect it would have on new business, existing business and also debt recovery.At the end of 2008 the company took steps to reduce costs by making a number of staff redundant and vacating its premises in Glasgow so as to only trade from its premises in Edinburgh. Despite these changes the company was struggling to deal with historical debt of approximately £1.35m owed to unsecured creditors, including approximately £1.1m owed to HMRC.So how did KSA Group rescue the business?Read the full case study to find out
ReadKSA Group saves 1760 jobs using CVAs
We have done an analysis of all the companies that we have successfully negotiated CVAs for and which have been approved by creditors and filed at Companies House. Since January 2011 KSA Group have "saved" 1760 jobs in these firms.What do we mean by that? Well, prior to the CVA being filed these businesses faced being wound up or being put into administration or liquidation as they suffered under the weight of their debts. The CVA allowed the unsecured creditors to receive a dividend on their debts ranging from 30p to 100p in the £1 and the business to get on with making money and being a useful and productive member of the business community!So what did we actually do? The main thrust is to persuade the creditors that the business is viable going forward. A special thanks to the team in our Berwick Office who do all the creditor liaison in this respect. Our corporate advisors talk to the client's bank, HMRC, trade suppliers, and customers amongst others. We also advise the directors on how they can cut costs to become more efficient using the powerful company voluntary arrangement mechanism.Of course those jobs are just from CVAs. They do not include the work we do with pre pack administrations, trading administrations and informal time to pay deals with creditors.
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