CVA case study for rightsizing businesses post Covid-19 shock.

CVA Summary for “GBS” name withheld:

1. Sales forecast to be £1,800,640 in the first 12 months of the CVA period. Down from £3.92m pre Covid.
2. 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
3. The company has vacated leased premises, saving £100k pa.
4. Preferential creditors:
   a. Primary preferential creditors will receive; N/a
   b. Secondary preferential creditors will receive 100p in £1
5. Unsecured creditors will receive 13p in £1
6. HMRC voted for £361k preferential, £106k unsecured.
7. Total unsecured debt £532,000.
8. 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.