Freephone: 0800 612 7593

Licensed Insolvency Practitioners - INSOLVENCY - BUSINESS RECOVERY - TURNAROUND

Contact us now for FREE confidential advice

Home » Case Studies » Saving a Business when a petition arrives

Saving a Business when a petition arrives

Background 

  • Company traded as a children’s play centre
  • Turnover of £400,000  
  • Employed 4 staff
  • Assets of £15,000

 

Problem 

  • Largest creditor was HMRC, owed £73k for unpaid VAT and PAYE
  • Other trade creditors of £15,000
  • Petition to wind up the company issued by HMRC received – hearing due to be heard in 30 days
  • Creditors accrued because the centre was forced to close for 3 months due to a collapsed roof 

 

Solution

  • Immediate action was taken to review the sustainability of the Company without the debt – the core business was viable
  • Contact was made with HMRC to explore options of a payment plan – this failed as HMRC demanded all of the arrears to be paid prior to the hearing date
  • Parker Andrews were instructed to place the company into Creditors Voluntary Liquidation (“CVL”), allowing the business to be marketed for sale
  • A sale was agreed with the Liquidator upon appointment – far in excess of the likely break-up value of the assets
  • All staff were retained and transferred to the purchaser, therefore no redundancies and far lower level of creditors in CVL compared to a compulsory winding-up
  • Parker Andrews instructed a solicitor to attend the hearing to have the petition dismissed as the company had entered CVL prior to the hearing date – this was granted

 

Conclusion

  • Company entered CVL rather than Compulsory Liquidation
  • The petition to wind up the company was dismissed
  • Business assets and goodwill purchased at far higher value than likely in a Compulsory Liquidation, resulting in a dividend to unsecured creditors
  • Jobs saved after all members of staff transferred to purchaser of business
  • Creditors were informed and dealt with by Parker Andrews
  • Sufficient funds realised to allow a dividend to unsecured creditors
admin




Case Studies

Saving a Business when a petition arrives

Background  Company traded as a children’s play centre Turnover of £400,000   Employed 4 staff Assets of £15,000   Problem  […]

Successfully Implementing an MVL

Situation A manufacturer in the midlands had traded successfully for a number of years. When times were good, the business […]

A Comfortable Retirement

Situation A specialist contractor of approximately 20 years trading was seeking to retire. The Company vehicle was solvent, owned solely […]

An Alternative to Bankruptcy

Background The individual was a director of a limited company and this was his source of income He jointly owned […]

Here when you need us

We know your financial worries won’t switch off at 5pm – so neither do we.
Our team is always available by email and telephone in the evenings and at weekends,
and we can also arrange meetings out of hours if required.

Norwich

5th Floor, The Union Building, 51 - 59 Rose Lane, Norwich, Norfolk, NR1 1BY

Cambridge

CB1 Business Centre, Twenty Station Road Cambridge, CB1 2JD

Ipswich

Saracens House, 25 St Margaret’s Green Ipswich, Suffolk IP4 2BN

London

55 Old Broad Street,
EC2M 1RX

Portsmouth

Gatcombe House, Copnor Road, Portsmouth
PO3 5EJ

Our offices are all based in central locations but we are also happy to visit you at home or at your business premises if you need us to.

Back to Top

Copyright © Parker Andrews 2015 - Sitemap - Website by StrategiQ Marketing

Parker Andrews Menu

Parker Andrews