Rescue of Civil Engineering business via CVA

Sector: 
Civil Engineering
Company Size: 

Turnover: £4m +
Employees: 50

Issue: 

The Company, which had traded profitably for over thirty years, suffered a major bad debt and lost a significant contract, causing cash flow difficulties and a substantial build of creditor pressure.

Solution: 

A range of cost-cutting measures were taken to restore the business to viability and a Company Voluntary Arrangement (‘CVA’) was proposed to creditors to enable historic liabilities to be repaid over time.

Outcome: 
  • The CVA was approved by creditors, and the restructured business made contributions from profits over a three year period to repay all creditors in full.