Rescue case study – Flooring specialist

Owing to extremely poor trading conditions between October 2012 and February 2013, the company became unable to service its debts as they fell due.  The company contacted KSA for advice.  It was established that although sales were starting  to increase, the period of poor trade had caused the company to fail to meet its liabilities to trade creditors and HMRC and for arrears to accrue.

Trade creditors were owed c £184k, HMRC c £100k and Debtors owed £12k (WIP £28k)
At the time of appointment, the company were already coming under severe pressure from one aggressive creditor which resulted in the issue of a WUP.  The solicitors acting on behalf of the petitioning creditor were known for taking an aggressive stance.  Despite this, an agreement was reached with the third party who agreed not to advertise and further agreed to an adjournment to allow the completion of the CVA.

At the creditors meeting the CVA was approved.