CVA Summary for “GBS” name withheld:
- Sales forecast to be £1,800,640 in the first 12 months of the CVA period. Down from £3.92m pre Covid.
- Number of employees’ jobs saved is 35. Number of employees’ jobs unfortunately lost is 47. Redundancy Payments Office met the redundancy and lieu of notice claims of the leavers
- The company has vacated leased premises, saving £100k pa.
- Preferential creditors:
a. Primary preferential creditors will receive; N/a
b. Secondary preferential creditors will receive 100p in £1
- Unsecured creditors will receive13p in £1
- HMRC voted for £361k preferential, £106k unsecured.
- Total unsecured debt £532,000.
- Bank bounce back loan of £50,000 compromised by CVA
This is a great example of a company that had never made a loss until 2020, being saved. Covid-19 hit sales by 90%. Switched on directors, smart systems and up to date management accounts.
Would have been a shame to see this go into liquidation or Pre pack.
Will a CVA help your clients company “rightsize” the business to survive Covid-19? Get in touch now with Keith Steven on 07833 240747 or any of our CVA experts across the UK.