This is a case study where we were able to help a business that had a winding up petition issued against it.
The business was a contract delivery and transportation services company based in London, specialising in delivering bread and bakery products for bakeries to retail customers.
The company's accountant and advisor contacted KSA after reading the website. A meeting was held between the director and KSA Director: Wayne Harrison, at Tower 42.
KSA Group were appointed to assist the company on 6th November 2009.
By 30th November 2009, the annual turnover was £340,863 which is consistent with the previous year of £333,806 however losses were made of £116,263 and £74,745 respectively.
The company encountered financial difficulties due to being undercapitalised from the outset and from suffering the high maintenance and repair costs of servicing its fleet of delivery vehicles: mainly due to the fleet of second hand vehicles and engaging sub-contractors to make deliveries. This resulted in losses being made in 2008 and 2009. As a result, arrears to HMRC have occurred.
A payment plan was submitted to HMRC and was rejected. HMRC subsequently issued a Winding Up Petition, which presented at court on 12th October 2009 and served prior to KSA appointment.
What did we do?
• KSA put the director in touch with a legal firm specialising in situations of this nature. An adjournment was requested and granted for 63 days.
• Gained undertaking not to advertise the petition until 7 days prior to adjourned hearing.
• Unsecured Creditor debt was c. £153.6K of which HMRC 80%
• This included the Bank unsecured overdraft of c.£15K.
• HMRC approved CVA with standard modifications on 11th January 2010
• CVA Approved by 100% of the creditors that voted at the creditors meeting on 15th January 2010
• Dividend 47p in £1