Talk to us today in confidence0800 970053907833 240747

London Based Conference Organiser CVA Case Study

18 November 2013

Sales £6m; Staff 30; Award-winning business suffering massive market fallout. 

Although a winner of awards for excellence this highly profitable business suffered a huge fall in sales after 9/11 and the attendant travel slump.

Sales had fallen by 50% almost overnight, the management team took action to restructure but, too little, too late. In addition the lease was up on the company's principal place of business and dilapidations costs were due.

KSA used a CVA to restructure the balance sheet and froze around £1.25m of debt built up in 2002.

Modest investment was provided from shareholders. The losses were stemmed whilst marketing restarted and costs were reduced. KSA helped restructure the company and around 25 people were made redundant.
New management was introduced to help the two founder directors who were struggling with the stress of downsizing, relocation of premises and firefighting.

The company has since been sold to a management buy out team who have the requisite capital to rebuild the business. The CVA supervisor has been able to convert modest assets into cash and will pay a dividend to creditors when appropriate. This has avoided the consequences of liquidation meltdown of assets

Categories: CVA, What is a CVA or Company voluntary arrangement?

Flowers Sent By A Client!

Bouquet of Flowers

We agreed a 2 year Time to Pay Arrangement with HMRC for a client.  They sent some lovely flowers today

A happy client created this cartoon strip for us!


A Worried Director

The Ultimate Guide For Worried Directors

Worried about poor cashflow? Feel you have got into a bit of a mess? Covid-19?, How to pay wages on pay day? For reassuring advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539

You are currently offline. Some pages or content may fail to load.