Rescue of Sports Car Manufacturer via CVA

Sector: 
Automotive
Company Size: 

Turnover: c.£350k

Issue: 

The business was under-capitalised and suffering from production problems which were affecting revenue.

Solution: 

A Company Voluntary Arrangement was initiated to facilitate investment by a third party.

Outcome: 
  • A CVA was proposed whereby an investor would make a lump sum payment to discharge all creditor liabilities (at a discount) in return for an equity stake in the Company.
  • The CVA proposal was approved and was successfully concluded, preserving the business and all employment.