The residential nursing care home provided long-term and respite care to 38 elderly patients and specialised in supporting individuals living with Dementia. The locally renowned care home operated since the mid-1900s and had an exemplary record for delivering exceptional services tailored to the elderly at all stages of life.
The care home started accumulating losses and soon plunged into financial distress as it no longer had the funds necessary to cover day-to-day maintenance costs or pay creditors.
To continue the delivery of essential care services to elderly service users, we were approached to help source a suitable solution to the financial problems encountered by the veteran nursing home.
We were appointed by the Trustees on the recommendation of the Bank to seek a suitable insolvency procedure as ongoing losses in the nursing home could not be funded by the overdraft.
Our team undertook a Company Voluntary Arrangement (CVA) which allowed us to enter negotiations with creditors to revise repayment terms with a view to reduce the financial pressure on the business and preserve viability.
The CVA resulted in the care home being traded and subsequently sold to a suitable party for fair market value.
Following the CVA, all creditor debts had been paid off in full and the remaining balance was paid to the nominated Charity which had similar aims and objectives to the nursing home.
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