UK based road transport freight supplier

The director of a haulage company contacted Keith Steven of KSA to discuss the company’s present financial situation.  After the initial telephone conversation a meeting was requested and held at the company’s premises in October 2010. 
KSA were appointed to assist the company with a Company Voluntary Arrangement (CVA) on 28th October 2010. Turnover for the year to March 2010 was c£1.25m (a fall of £250K on previous year).
The company was encountering financial difficulties due to:
– A drop in sales.
– Lack of vehicle resources in Europe after the recession hit 
– Much tighter margins due to greater competition for the work 
Premises
– The company occupied licensed serviced offices on a 3 month rolling contract.
Employees:
– The company employs 9 staff including the directors
Bank & Financial facilities
– The Bank provided a cleared funds account only and held no security against the company
– The company had an invoice finance facility which funded 75% of approved invoices and held a registered Fixed and floating charge over the company’s assets.
– The company had no finace agreements e.g. H.P. lease, contact hire etc.
Director
– The directors had provided no Personal Guarantees (PGs) to any creditor. 
Unsecured Creditor debt:
– Unsecured creditors were owed c£200K of which HMRC was 13%.
Unfortunately, in early 2011 the director realised that the company was no longer viable due in some part to a small number of creditors holding a ransom. In order to make no creditor’s position any worse the director approached KSA to now place the company into CVL (Creditors Voluntary Liquidation).