120 jobs saved with CVA approved by 95% of creditors
14 May 2019: BRI’s Coventry office achieved recent success in getting a proposal for a Company Voluntary Arrangement (“CVA”) approved by 95% of creditors. The company in question is a large local employer with a sound reputation and excellent prospects. The company faced tough trading issues following a downturn in the automotive industry compounded at the same time with a move from multiple trading sites to one site.
Determined to succeed, the company agreed with its unsecured creditors to pay them a minimum dividend of 58 pence in the pound over the next 5 years. By contrast, there would be a 6 pence in the pound return to creditors if the company entered liquidation. Therefore we have helped to enable an almost 10 fold return over the alternative of closure. In addition, the jobs of circa 120 staff have been saved in the process.
For any CVA related questions or concerns please speak to any of the BRI management team. We specialise in understanding a company’s needs and matching those with the requirements of a CVA together with HMRC’s expectations in order to achieve the best possible outcome for directors, shareholders and creditors.