Any help or advice please

[leeroy_b]

Any advice...

Should I stick with the company preparing my CVA and then become a CVL when they have gathered all info.?

Should I go into a IVA to protect myself?

Will I lose my home or do I continue to pay the business loan?

Any help or advice please as I need to seriously start something within the next few weeks.

Many Thanks

[ianmillington]

Hi Leeroy

I assume you are a director of the company?

I am a little shocked that you have instructed a firm to embark upon insolvency procedures for your Company without having any idea of its consequences upon you. The answers to the questions you have raised (which are rather wide) are many and varied and will depend upon a review of all the facts. You are wise to ask them but doing so after putting the company into a CVA/CVL is very much shutting the stable door.....

I can only suggest that you call a halt to the Corporate Insolvency until you have taken proper advice from a local insolvency practitioner. You will certainly need a face to face meeting.

Ian

[l_b]

Thanks for getting in touch with me.

I did read up on all of the CVA info and when the company visited me they advised me that a CVA was the best option.

It concerns me now that questions I keep asking from them dont get answered and they say that it should not affect me personally.

The factoring company know about the CVA, they are not happy but are just going along with it.

I have been let down by customers who have either gone bust or just wont pay and now its all seems to be caving in.

I have good staff and good contacts. Also a table full of potential contracts from good payers. I have a new contract worth a lot of money but cant continue with the way it is now.

I have been looking into CVL and setting up a phoenix company or pre pack is this viable.

I could then continue to service the loan on the house as there would be enough income to pay this.

I used to think it was all my fault now I realise that I am only in this situation because of a few bad payers, which will never happen again !!! I hope..

[ianmillington]

Are you dealing with a local firm, Leeroy? If not, where are you based?

Ian

[l_b]

I am based in Crawley, West Sussex. The firm we have been dealing with come Berwick?? They told us at the start that they would work with us and £13k later they have nearly compiled the CVA but I am not confident with them. They have all our information.

[ianmillington]

£13k? that's a bit steep, especially as the CVA hasn't seen the light of day yet. Seriously I think you need a 2nd opinion as a company insolvency has the potential to start a chain reaction, with adverse consequences. You need to know what they are before you issue the CVA proposal.

I do know someone in Crawley who will be able to give you a bit of advice, although he's not an IP. He shouldn't charge you for a chat. If you want me to effect an introduction feel free to e-mail your details to me. You can get my e-mail address from the find an IP section at www.insolvency.gov.uk. I will put in a call tomorrow if you wish.

Ian

[l_b]

I would be very grateful. If I could get a second opinion.

I will email you my details.

So is there a possibility that a CVL would be a better option then rather than a CVA.

Many Thanks

[MelanieGiles]

As I said on my earlier post to you Leeroy, a CVA is only really a sensible option for you if your financial difficulties are temporary and can be resolved. Paying old debt through an ongoing trading company is immensley difficult, and puts a huge strain on the business going forward.

Take Ian's advice and get a second opinion - but this all rather hinges on where you see the business going. What business are you in as a matter of interest?

[l_b]

hi Melanie

I am contractor in construction.

As the company is the bad payers and companies who have gone bust on me have put a huge strain on me and as it is I cant see any light at the end of the tunnel.

I have all the knowledge and contacts and want to continue in this industry.

I have a good workforce and little overheads really. The money is good when paid!!

I have many potential jobs lined up and with good payers. I have a new contract which could be affected by all this when I really just want to break away and start again.

Out of the many customers we have had the ones who went under have started again and those I would keep away from. The small companies and larger companies. so we will; stick to medium sized companies who have always paid well in the past.

[l_b]

any advice is really appreciated

[MelanieGiles]

Can you explain to me why the IP you have chosen to represent you has advised a CVA, and secondly why it is all taking so long.

It is good that you are looking at ways to restructure the business, but can you tell me how much the company actually owes and what profits (after taxes) you have projected as being earned over the next three years. Also how much do you owe to HMRC?

[l_b]

We owe very little if anything to the HMRC. We have not seen a IP yet we have gone to a company company rescue who advised that there might be a chance to recover in years to come.

We owe suppliers around £100k. And the factoring company £200 secured with debenture and guarantee. Also a secured loan on our home of £100k. We have not defaulted on any but we are having a nightmare paying our suppliers as I feel we are against the wall and everyone knows we are doing a CVA, everyone!! I thought it was confidential.

I dont know why its taking so long its making me sick i only thought it would be a 3 months at most.

[MelanieGiles]

What about projected profitability over the next three years and how is the CVA to be funded? Personally I would take advice directly from an insolvency practitioner, who I do not feel would be suggesting a CVA from the limited information you have provided.

[l_b]

Do you feel that from the info I have given that a CVL would be better so I could take on the contracts and start again.

Sounds bad but I would feel guilty letting down the suppliers who we would be not paying but we are owed lots of money. The factoring company have said that if I went bust they would not be able to recover any of the money.

I have been looking at a phoenix company or pre pack where this could save the jobs and keep the new good contracts.

[MelanieGiles]

Leeroy - please answer my question about profitability. What profits do you expect to generate over the next three years! And I cannot possibly advise you as to the best option for you over a debt forum - you need specialist and hands on advice from a qualified professional soon.

And do ensure that if you do decide to liquidate and move the business to a new company, that you have the assets properly valued, exposed to the open market and if you are the only interested party that you pay a fair market price for them.