60 year old engineering company reduces liabilities by 60% and repays 40% over 4 years
The business was profitable, making over £100,000 profit on sales of £4 million per annum, but the company incurred bad debts of over an 18-month period in excess of £750,000, resulting in liabilities of over £1 million. After negotiating with HMR&C and the company's other main creditors, a CVA was proposed offering a repayment of 40p/£ over a 4-year period, which was accepted. After writing off some £600,000 of liabilities, and budgeting to repay the remaining debt over 4 years, the company is able to continue trading and is generating profits.
Manufacturing company writes off 70% of debts
Although the company had made historical losses, with new contracts secured the business was now viable. However, the company was burdened with debts of £600,000. As the new contracts had been signed by the company, it was essential that the company continued to trade, or the contracts would have been lost. A CVA was proposed offering a repayment of 30p/£ over a 4-year period, which was accepted, and the company wrote off £420,000 of liabilities.
The business was profitable, making over £100,000 profit on sales of £4 million per annum, but the company incurred bad debts of over an 18-month period in excess of £750,000, resulting in liabilities of over £1 million. After negotiating with HMR&C and the company's other main creditors, a CVA was proposed offering a repayment of 40p/£ over a 4-year period, which was accepted. After writing off some £600,000 of liabilities, and budgeting to repay the remaining debt over 4 years, the company is able to continue trading and is generating profits.
Manufacturing company writes off 70% of debts
Although the company had made historical losses, with new contracts secured the business was now viable. However, the company was burdened with debts of £600,000. As the new contracts had been signed by the company, it was essential that the company continued to trade, or the contracts would have been lost. A CVA was proposed offering a repayment of 30p/£ over a 4-year period, which was accepted, and the company wrote off £420,000 of liabilities.
PHOENIX
BUSINESS SERVICES
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