UK based management consultant LLP

29 April 2016

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.  

Categories: CVA, What is a CVA or Company voluntary arrangement?