Company Voluntary Administration
Discussion
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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
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