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Midlands based transport & logistics business

The director of the transport and logistics company contacted Sarah Massey of KSA to discuss the company’s present financial situation. Then, after a subsequent telephone conversation with KSA regional manager George Davis, a meeting was requested and held.

KSA were appointed in December 2011 to assist the company with on a Plan A, Plan B scenario:

Plan ‘A’ to propose a TTP (time to pay proposal) however, if this was not acceptable to the creditors, then proceed to
Plan ‘B’ a CVA (Company Voluntary Arrangement)

The company had a turnover of £662K in the 12 months ending 2010.

It was encountering several financial difficulties:

  1. A fire had destroyed the company’s vehicles and much of the property
  2. Whilst the insurance paid out in respect of lost vehicles, the company had no insurance for loss of earnings, or environmental damage
  3. The company had a large fee to pay in respect of environmental works, for which an agreement was reached
  4.  The company had also repaid much of the initial set up funding.
  5. Failed TTP arrangement with HMRC for c£60K
  6. County Court Judgement for c£35K

Having acknowledged that the firm was unable to pay its debts as and when they fell due, the director contacted KSA  for help and advice.


  • The company rented it’s premises on an ‘ad-hoc’ arrangement with no official lease or licence.


  • The company employed 5 staff including the director.

Bank & Financial facilities

  • The Bank was unsecured (i.e. the bank held no legal charge over the company’s assets)
  • The Bank provided only a cleared funds account: no overdraft facility, no loans and no credit cards
  •  There was no invoice finance facility
  •  There were 3 outstanding finance agreements in respect of the company’s vehicles.


  •  The director had provided no Personal Guarantees (PGs) to any of the company’s creditors.
  •  KSA was made aware that no loans had been made available to the company by the director. However, it was unable to ascertain whether there was an Overdrawn Director’s Loan Account.

Unsecured Creditor debt:

  • It was estimated that the unsecured creditors amounted to £90K, however this remained unconfirmed, of which HMRC was 62%

The company was not fully up to date with its report compliance obligations. HMRC has issued a letter of intent to pass the case to their solicitor to commence the winding up of the company.

KSA resigned from this case in March 2012. This was due to the director not fulfilling his agreement to provide all the necessary information in the agreed timescales.

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