UK based management consultant LLP

An associate of the consultancy LLP contacted KSA regional manager, Amanda Eckersley, to discuss the company’s present financial situation.  A meeting was requested and held at the LLP’s premises.
KSA were appointed to assist the company with a Company Voluntary Arrangement (CVA). Turnover for the 2015 trading year had been c£270K. 

The company was encountering financial difficulties due to:
– A large litigation action which was settled. 
– Inefficient daily operations, falling behind on HMRC submissions
– Failed investment offer 
– Severe cashflow issues. .

Premises
– The LLP occupies a leased town centre office

Employees:
– The LLP employs 2 staff excluding the designated members. It was unnecessary to make any redundancies; however, redundancies may be made in conjunction with a CVA.

Bank & Financial facilities
– The bank provides a small overdraft facility
– The bank is unsecured i.e. there is no registered legal charge against the llp.
– There are no finance/lease agreements

Designated Members
– The designated members had provided personal guarantees in respect of  a loan facility
Unsecured Creditor debt:
– £150K of which HMRC was 67% 

Cost & overhead reduction 
– Prior to KSA’s appointment, payroll was reduced to the bare minimum.
– All overheads have been reviewed and, where possible, reduced to necessity level.  All cost streams are constantly monitored.

New activity
– New SEO and digital marketing strategy

The nominee’s review was held and the CVA and nominee’s report were subsequently lodged at court. The CVA proposed 59p in £1 repayment to unsecured creditors over 5 years. HMRC provided their response accepting the CVA.

The CVA was accepted by the body of creditors at the creditors meeting and the LLP is in CVA.