Turnover of £3.2m. General decline of construction industry leading to financial downfall.KSA was approached by one of the Directors of this company, which led to a meeting being held between the Directors and KSA Director Iain Campbell.
The construction industry has suffered a massive hit due to the recession, which is one of the main reasons that this company began to fail. The turnover to 31st October 2013 totalled £3.2m, which was a fall of £400k from the previous year. Due to a level of bad debts and a reduction of their overdraft limit, the Directors decided to seek professional insolvency advice in order to try and deal with their cash flow pressures.
As well as their overdraft and the £267K owing on the commercial mortgage, the company had a total debt of £761K to unsecured creditors alone. This included the HMRC, to whom they owed £210K.
KSA was appointed to draw up a CVA, which included a restructuring of the balance sheet, and which led to some debt forgiveness by finance providers. It was approved by the HMRC on 5th August 2013, and by the body of creditors at the creditors meeting on 8th August 2013.
The divided agreed upon by the body of creditors was 35p to the pound. Whilst 11 redundancies had to be made, the CVA meant that a further 24 jobs were saved.
If you are finding yourself in a similar situation, then get in contact with us today to find out more about the options available to you. Don't leave it too late speaking up now could help to save your company!For confidential free advice, please call 0800 9700 539 or 01289 309431