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Posted: Wed Apr 30, 2008 3:57 pm
by desmond.m
I have had a car bodyshop claim insolvency. They owe me £2.000 and say the have appointed accounts to prepare a creditors voluntary arrangement. They company has changed name and has now continued business. How can they do this and will I ever get my money
Posted: Wed Apr 30, 2008 5:21 pm
by emma_t
Hi desmond
I will answer your post to get to the top of the board again and sure an expert will answer your post as soon as they can.
Sorry, but I have no idea!
Posted: Wed Apr 30, 2008 6:46 pm
by ianmillington
Hi Desmond
I assume you mean Creditors Voluntary Liquidation (CVL) as opposed to Company Voluntary Arrangement (CVA). If the former this involves a cessation of trade and disposal of assets (which may be to the directors) whereas in a CVA the thing is normally kept together with a view to the company making contributions towards paying the creditors. The change of name suggests it's a CVL. If it is a CVL then they are drawing a line under things and starting again. They have probably entered into some preliminary agreement with the proposed liquidator to maintain continuity pending holding a creditors meeting. Nothing intrinsically wrong with that but ultimately they must pay the proper price for what they acquire.
I have a 4 page pdf setting out the basic principles of a CVL. Admin might not want me to duplicate it here so send me an e-mail (you can get my address from the Find an IP section at
www.insolvency.gov.uk )and I'll be pleased to send you a copy. It's a little out of date but should be a decent intro for you.
Let me know
Ian