The Heathrow-based logistics firm appointed turnaround firm KSA Group to devise a CVA to enable the business to carry on trading while it repays its debts over five years at a rate of 38.3p/per pound owed for unsecured creditors.
The creditors unanimously voted to approve a company voluntary arrangement (CVA). The company had suffered as a result of the harsh winter of 2009/10, the rise in diesel prices that increased more than the company's fuel surcharge, and the Icelandic ash cloud.
The turnaround plan will see the firm’s Bristol and East Midlands airport depots closed, wages and recruitment frozen and the chief executive inject £300,000 into the company.
Click the link to read the full case study - CVA rescues haulage and logistics company
The Chairman is happy to provide references for KSA Group to any director looking for advice.
For more case studies on how we have rescued companies using the CVA route see our case studies page