Updated: 3rd November 2021
The limited company traded profitably as civil engineers since its incorporation, however, it arrived at a crossroads after accumulating an unexpected bad debt.
A large unrecoverable debt had a dramatic adverse effect on the cash flow of the company and its ability to fulfil liabilities, resulting in the company becoming contingently insolvent.
As the business no longer had enough funds to pay creditors, immense pressure was placed on the company to make repayment. Without professional guidance, the business was at high risk of facing legal action in the form of a winding up petition, resulting in compulsory liquidation.
Under professional recommendation, the company entered a Company Voluntary Arrangement (CVA) as the best course of action to allow additional time for the debts of the company to be repaid.
During the implementation of the CVA, multiple modifications to the arrangement were proposed by several creditors which involved appointing two members of our team to act as Joint Supervisors of the CVA.
Although we would ordinarily deal with a CVA from the outset, requests from creditors resulted in our appointment where another Insolvency Practitioner firm would have naturally expected appointment.
We supervised the CVA procedure from the date of approval and oversaw the collection of monthly contributions & agreement of creditor claims.
Gary is a Fellow of the Institute of Chartered Accountants in England and Wales and a Licensed Insolvency Practitioner with over 20 years experience in the profession.
He has worked extensively with Banks, Asset Based Lenders & Private Equity on mid market & SME assignments. He has a broad range of experience gained through a variety of assignments, working on formal insolvency appointments, informal workouts, debt negotiations and independent business reviews.