
My Business Is Failing – How Can I Save It?
My Business Is Failing – How Can I Save It?The company’s invoice finance facility provider, asked KSA Group to attend the company’s premises, to conduct an Independent Business Review (IBR). The IBR was conducted in February 2015 at the company’s premises by KSA director and Insolvency Practitioner Eric Walls as well as KSA’s Craig Harmon
The company operates within the transport sector providing heavy haulage services.
The IBR identified that the company failed 2 of the insolvency tests under section 123 of the insolvency act 1986 and a Company Voluntary Arrangement (CVA) was recommended.
KSA were appointed to assist the company with a (CVA) in April 2015. Turnover for the year to September 2014, was c£537K.
The company was encountering financial difficulties due to:
Premises:
Employees:
Bank & Financial facilities:
Director:
Unsecured Creditor debt:
Other issues which were addressed. In conjunction with the company’s external accountant, maintenance of the company’s financial reporting systems would become the responsibility of one member of staff, to ensure efficiency and accuracy of financial information moving forward.
A fully structure process for the company’s charge out rates had been adopted to ensure profitability on individual jobs.
Due to the issues not being addressed soon enough one of the creditors served a Winding Up Petition on the company in May 2015.
KSA actively liaised and negotiated with this creditors solicitor and it was agreed that at the hearing the Winding Up Petition would be adjourned; after which, due to further delays in the process, a further adjournment was requested and obtained.
Unfortunately due to the director’s prolonged ill health, the director took the decision to close the company and cease trading in order that no creditors position was made worse.
At this stage KSA has been approached by the company and secured creditor with respect to appointing KSA to liquidate the company (Creditors Voluntary Liquidation /CVL). However, KSA can not undertake this appointment until the present winding up petition is withdrawn.
My Business Is Failing – How Can I Save It?
My Business Is Failing – How Can I Save It?