Company Directors approached Debtfocus to look at the company position following creditor pressure, with debts in excess of £600,000.

After analysing the trading position it was clear that a CVA wasn’t viable as the company was only just breaking even. Accordingly, Debtfocus arranged for independent Surveyors to provide a valuation of the company assets on a going concern and break up basis {by Auction}. The directors expressed an interest in buying the company assets as they fancied giving the business another go with smaller premises and a smaller workforce.

The directors were very worried about the recent bad press concerning pre-packaged administrations however Debtfocus have a wealth of experience in handling such cases and the main route to a successful pre-pack is to get professional advice from the start from a Licensed Insolvency Practitioner.

In such cases Debtfocus’ Insolvency Practitioner will meet with the directors personally to ensure it is the best advice and make certain the process is implemented correctly right from the outset.

The company entered Administration and all the assets were sold to the former directors for an agreed price of £40,000.  The remaining company debt was written off and all company liabilities including the leasehold premises and employees claims were dealt with by the Administrator and the former directors succeeded with their new company plans.