Company Voluntary Administration
Discussion
Here's the picture:
I have been appoached and am very interested in a deal with a company that has been placed in a CVA because it faced a winding up petition from a credititor. The admisnistration period is for 2 years.
It got into this state due to underestimating the funding required, extremely poor core strategy and management, and being sidetracked by external issues.
The business has around £300k in assets, and owes around £300k to creditors. If rescued and aimed in the right direction it has the potential for a multi million pound income stream and capital realisation. Additionally there are a number of "innocent victims" caught up who need to be liberated.
The problem is this. Although the owner has agreed in principle to a proposal, he is exremely flakey and is unlikely to deliver so I would prefer to deal with the Administrator.
As a successful outcome requires ownership of the assets, is it possible to deal directly with the Administrator or am I tied into dealing with Mr Flakey (which I would rather walk away from)?
If anyone qualified can offer an opinion I will be most grateful. Thanks
I have been appoached and am very interested in a deal with a company that has been placed in a CVA because it faced a winding up petition from a credititor. The admisnistration period is for 2 years.
It got into this state due to underestimating the funding required, extremely poor core strategy and management, and being sidetracked by external issues.
The business has around £300k in assets, and owes around £300k to creditors. If rescued and aimed in the right direction it has the potential for a multi million pound income stream and capital realisation. Additionally there are a number of "innocent victims" caught up who need to be liberated.
The problem is this. Although the owner has agreed in principle to a proposal, he is exremely flakey and is unlikely to deliver so I would prefer to deal with the Administrator.
As a successful outcome requires ownership of the assets, is it possible to deal directly with the Administrator or am I tied into dealing with Mr Flakey (which I would rather walk away from)?
If anyone qualified can offer an opinion I will be most grateful. Thanks
TDIPLC said:
Here's the picture:
I have been appoached and am very interested in a deal with a company that has been placed in a CVA because it faced a winding up petition from a credititor. The admisnistration period is for 2 years.
It got into this state due to underestimating the funding required, extremely poor core strategy and management, and being sidetracked by external issues.
The business has around £300k in assets, and owes around £300k to creditors. If rescued and aimed in the right direction it has the potential for a multi million pound income stream and capital realisation. Additionally there are a number of "innocent victims" caught up who need to be liberated.
The problem is this. Although the owner has agreed in principle to a proposal, he is exremely flakey and is unlikely to deliver so I would prefer to deal with the Administrator.
As a successful outcome requires ownership of the assets, is it possible to deal directly with the Administrator or am I tied into dealing with Mr Flakey (which I would rather walk away from)?
If anyone qualified can offer an opinion I will be most grateful. Thanks
I have been appoached and am very interested in a deal with a company that has been placed in a CVA because it faced a winding up petition from a credititor. The admisnistration period is for 2 years.
It got into this state due to underestimating the funding required, extremely poor core strategy and management, and being sidetracked by external issues.
The business has around £300k in assets, and owes around £300k to creditors. If rescued and aimed in the right direction it has the potential for a multi million pound income stream and capital realisation. Additionally there are a number of "innocent victims" caught up who need to be liberated.
The problem is this. Although the owner has agreed in principle to a proposal, he is exremely flakey and is unlikely to deliver so I would prefer to deal with the Administrator.
As a successful outcome requires ownership of the assets, is it possible to deal directly with the Administrator or am I tied into dealing with Mr Flakey (which I would rather walk away from)?
If anyone qualified can offer an opinion I will be most grateful. Thanks
I'm pretty sure that while the company maintains the terms of the CVA then Mr Flakey will remain in charge/control.
Speak to Phil Beavan Kilby Fox Consulting ... Corporate recovery, Licensed DTI Benchmarkers, Specialists in CVA, Negotiating with administrators OI etc. www.kilbyfoxconsulting.co.uk
just got this reply from my brother Phil. Hope it makes more sense to you than me:
"Let him know that if the company is in CVA the Administrator is now officially a Supervisor which the owner will flag - but its a smoke screen - regardless of the adminsitrator/Supervisor any insolvency process is designed to achieve the best outcome for the creditors.
I can (and have) bypassed the Administrator/Supervisor and cut the owner completely out......
"Let him know that if the company is in CVA the Administrator is now officially a Supervisor which the owner will flag - but its a smoke screen - regardless of the adminsitrator/Supervisor any insolvency process is designed to achieve the best outcome for the creditors.
I can (and have) bypassed the Administrator/Supervisor and cut the owner completely out......
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