Jamie Playford, Licensed Insolvency Practitioner, Business Advisor and Director of East Anglia Insolvency practice Leading UK has today spoken about how he recently helped a Norfolk based company restructure and rescue their business through using a Company Voluntary Arrangement. Jamie confirms that he was approached by the directors of the business towards the end of 2015 as they were struggling financially following the non payment of a large contract where work had already been conducted. Sadly, this missed payment had meant the directors had struggled to manage their cashflow and had reached a point where their reserves had also been exhausted. During the initial meeting with Jamie, they explained that they were likely to make redundancies as they simply couldn’t afford to staff the business at the same level.
Having conducted a full review of the company’s financial position, it became clear that the business remained viable and that the cashflow issue was a short term problem only. Jamie worked with the business owners to create a rescue plan and proposed a Company Voluntary Arrangement as a sensible solution. A CVA meant that the company could repay their debts in a way that was much more affordable whilst continuing to trade. By implementing a Company Voluntary Arrangement, the business has managed to avoid redundancies and is continuing to trade with a much more positive cashflow. Jamie said “A CVA is a fantastic tool that helps business owners to deal with a short term financial issue. It allows the business to continue trading whilst the debts are repaid at a more affordable rate and helps preserve the life of a business that would otherwise likely be terminated.”