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Tuesday, 2 July 2013

Restaurant attempts a CVA - A case study

The company traded as a restaurant and pastry/coffee shop

KSA were appointed to assist the company with the production of  CVA proposals on 11th July 2011
Turnover to 30th June 2010 was £1.2m a £55k increase on previous year

The bank was secured with a debenture (Fixed and Floating charge) and a mortgage.
Owed £53k on £400k overdraft facility
£234k owed on 2 bank loans – original cumulative facility of £310k
£47.5k remaining on 1 EFG loan – original facility of £60k
£3k remaining on 1 SFLGS loan – original facility of £60k

The directors provided personal guarantees and security by way of personal property for any outstanding amounts.

Unsecured creditors

Total debt of £318,771 inc. HMRC at £216,186 (c.68%)
HMRC approved the CVA with standard modifications on 5th December 2011

A CVA creditors meeting was held in London in December 2011.

The actual result was not quite what you would expect?

Read the full case study below

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