We spent time with the company owner and at the business helping him to draw up an individual business plan that defined a course of action that best suited the business.
The plan was put to the creditors, which gave them confidence that the same mistakes were not going to be made again, and that problems had been addressed. A business cash flow was compiled, and any excessive costs identified and reduced. The plan identified an achievable amount they could pay back to creditors, towards their debt.
The company decided on a Company Voluntary Arrangement (CVA) in which the creditors are paid off either whole of part of their debt, usually over 5 years. The company has already paid creditors 50 pence in the pound and the intention is to pay them in full.
All 7 employees also kept their jobs and ongoing trade creditors are confident in the business. There has also been additional investment, during the course of the CVA, which demonstrates the faith investors have in the business going forward.
By involving CRG Insolvency we were able to help a good business find their way through their debt problems, pay off creditors and keep their staff employed. The business is now in far better shape than it was before their financial difficulties.