Broadcaster of TV channels, Bid TV and Price Drop, is proposing a company voluntary arrangement (CVA) in order to restructure the business and organise debt.
Sit-up Limited was recently sold to Tnui Capital but has rung up debts of £68 million over the years. If the CVA is approved by creditors, 350 jobs could be rescued along with an opportunity to get a £6million investment from entrepreneurs, Paul Wright and Val Kaye.
CEO of Tnui Capital, Bryan Green, said, “A first class team has been assembled to drive through the restructuring of Bid TV and Price Drop. We believe the business will be preserved through a CVA which will save 350 jobs”.
KPMG are supervising the CVA and are holding the creditors meeting at their Salisbury Square office on 18th March. Overseeing the restructuring plans, Will Wright of KPMG commented, “If agreed, the CVA, coupled with the investment from Paul Wright and Val Kaye, will be the final piece of the jigsaw, enabling the company to right-size its infrastructure and putting it on a much sounder footing."
A CVA can be the best option for creditors as it is more likely they will be paid a greater amount of money back than through the administration or liquidation process. In this case, it is expected they will receive £600,000 if the CVA is approved. Over 75% of creditors by value must approve the move in order for a CVA to go ahead.
Here is an example of voting at a creditors’ meeting.
UPDATE: 19th March - CVA has been approved by 99% of creditors, allowing restructuring plans to take place. Wright commented, "Today’s ‘yes’ vote gives sit-up Limited the green light to renegotiate its infrastructure supply contracts, rightsizing its fixed cost base and giving it a platform to trade on a more competitive basis".