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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:

  1.  A drop in sales.
  2. Lack of vehicle resources in Europe after the recession hit
  3. 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 registere
  • 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).

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