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Friday, 9 April 2010

Your Space plc - Company Voluntary Arrangement and why it failed?

Another plc entered a CVA (Company Voluntary Arrangement) late 2009.

See the nominee's report to the Court here by Bill Dawson and Daniel Butters of Deloitte:

http://www.yourspaceplc.com/documents/nomineesreporttocourt.pdf

We now note that the CVA failed and the company appointed administrators (Bill Dawson and Daniel Butters from Deloitte).

Could the reason for failure be that the CVA was predicated on paying over £366,000 per annum, into the CVA Scheme? Or was it predicated on selling off properties into a flat market? Was a three year scheme (instead of our usual 5 year scheme) too ambitious?

Interesting to read that in the 3 years to 2008 shareholders received dividends of over £6.9m

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