The company was incorporated in 2010 and commenced trading in 2011. Initially it formed part of a franchise in a shopping centre providing high quality coffee, fine wines and delicatessen products.
Unfortunately the restaurant’s opening was delayed due to issues with the contractors and shop fitters. As a result, the company did not benefit as expected from a rent free period which had been negotiated.
The company negotiated a rent free period, at the start of the tenancy. As a result of failures on the part of contractors and shop fitters the benefit of the rent free period was lost and the opening of the business was delayed.
It soon became clear that the franchise would not be successful and so the exiting from the franchise was negotiated.
A fresh start was needed and KSA was engaged. KSA successfully negotiated with creditors to enable the CVA proposal document to be prepared and filed. NPower had meanwhile obtained a disconnection warrant. They agreed to delay enforcement to allow the creditors’ meeting to take place.
The proposal was 100% approved at the creditors’ meeting, Npower agreeing to be part of the CVA.
Categories: CVA, What is a CVA or Company voluntary arrangement?