Missed DTI loan payment

[pict]

Hello All, our company missed one dti loan payment this month. We are in a position next month to meet all further payments. However the bank who is our lender has immediately recalled the whole amount of the loan ny sending me a formal demand for 87K. This seems (at the least) a very draconian measure as we are unable to meet this.We are looking at the possibility of a business IVA -how does this work and where do we stand?
Best wishes,
David

[MelanieGiles]

There is no such think as a business IVA - do you mean a Company Voluntary Arrangement or CVA? Seems a bit drastic just for one loan payment missed - who do you bank with and I would firstly look to see whether you could refinance the business.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[ellie 553]

Hi Pict - you seem to have the same probs as me at the moment!
Our DTI payment went out on the 15th but we took advice yesterday that the DTI loan would be included in our IVA if we go ahead with it & I think we will. This is because he said that the DTI would then have the biggest vote at our creditors meeting and are very likely to vote yes so I was told !
The bank took the DTI payment out of our account even though it exceeded our overdraft limit (we're with Lloyds) and they have always done this with the DTI loan so we havent missed a payment either for that reason.
If you can meet all your payments next month it doesn't sound as serious as our situation - what about changing the date of your next direct debit to the DTI to give yourself an extra 14 days (ie if it's on the 15th change it to the 30th) then you could make 2 payments in one month
Also I think you can ask for a payment holiday in the first couple of yrs but we never did this. Good luck !

[pict]

Hello and thanks for the prompt replies. As we are very new to this situation I did make the wrong assumption. We should be looking at a CVA instead of an IVA. do you still advise on this subject?

Best wishes,
David

[ellie 553]

We were advised to go for an IVA due to the higher expense of a CVA but it would depend on your personal situation I guess. Our IVA will include both business and personal unsecured debts (mostly business)

[Beechy]

Hi Pict
I take it from the posts that you have a limited company with liabilities and you also have your own debt?

If the loans have personal guarantees (PG) and the Ltd company did go for a CVA the PG would kick in.

At this point you personal situation would have to be looked at.

As you have only missed on payment the action of the bank looks harch. Unless the bank are aware of other problems.





Dave Beech

[Beechy]

Hi Ellie
Just read you posting here.

You said you went into an IVA when most of the debt was business related. You indicate that you had a company and give the impression that it was a Limited Liability Company.
If this is the case why have you taken on the debt? Did you have Personal Grantees in place?


Dave Beech

[pict]

Hello all -as were were a new company in a new fieled of technology (Fisheries Electronic logbooks) we had to give a PG on the overdraft of 25K. I also have given the business a Directors loan of 13K. We are a LTD company. The DTI have guatanteed 75% of the bank lending. Our business advisers (we spoke yesterday) cannot understand the attitude of the Bank -The Royal Bank of Scotland (your business partner -read fair weather friend).
So there are personal debts related to the business plus the personal guarantees we have given for the overdraft.

Thanks all for the help it is appreciated.

Best wishes,
David

[Beechy]

Hi
How does the business plan fit with the current situation. Have you looked at some restructuring of the debt,cost savings, introduction of new capital by either yourself or via a 3rd party.


Dave Beech

[pict]

Hi Dave -we are working with several gov agencies includung the foos standards agency SEAFISH ans the scottish exec. There is a delay in a 38K project that made us miss the payment. We are also due to sart another four projects in the EU! The bakn seems to have lost the plot for the sake of a few weeks delay.
We have stetched ourselves and not taken salary to lower the outgoings waiting for the projects to begin -we even received written confirmation last week that this is imminent.
Regards.
David

[Beechy]

If you have a letter of intent then you should be able to raise funds quite easily (if all the figures add up) I would be looking for another bank

Dave Beech

[MelanieGiles]

Pict - Is your company registered in Scotland?

I think there is some confusion in this thread, so can I just clarify that IVAs are for individuals and need to include both personal and business related debts if you are trading as a sole trader or in partnership - as I believe that Ellie is. CVAs are for limited companies which is an entirely different procedure, and are rarely proposed these days. For an insolvent company, Administration is probably a far more suitable option.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[pict]

Hi Dave - out own advisers have said the same thing -move bank. We have several letters of intent for imminent projects - either UK gov or Brussels related.
Melanie -we are a LTD registered based in Scotland -does this make a difference?

Regards,
David

[MelanieGiles]

Yes - so far as I am aware there is no CVA or Administration procedure in Scotland - but I am no expert. You would be far better off finding a local IP based in Scotland to give you further advice.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[Beechy]

Hi Pict
There is a company called Invocas who are based in Scotland who may be able to assist

Dave Beech