Business Asset Sale Case Study

Read how we restructured a struggling group whose parent company was in a  CVA.

Electrical Contractors, West Midlands

Business Asset Sale

Having their parent company (of these 2 solvent trading companies) in a CVA was costing time and losing contracts. The CVA had arranged the hive down of the trading to 2 new companies in 2010.

These were trading reasonably for a time but then the client contractors complained - about the non trading holding companies, being in CVA. New work was drying up as credit was difficult to obtain for the solvent trading companies. A ridiculous credit rating issue really.

The new trading companies were solvent, modestly profit making but being forced down an insolvency path, all because their shareholder company was in a CVA!

Solution:

We arranged for a valuation of the solvent trading companies assets and then arranged for the parent company to sell their shares in each, for that fair value agreed by Winterhill Largo plc (RICS), to new shareholders.

Cheswick led the sale of the assets, advised the valuers, arranged the board resolutions and led the whole process. Then the old parent company was placed into creditors voluntary liquidation to return some of the proceeds to its creditors. The CVA supervisors will also distribute a dividend to previous CVA creditors.
Need to fix a similar problem? Please call 020 74166677 now

New Case Studies Business Asset Sales

We have a cashflow crisis, we have aggressive creditors, we have a buyer for the business but it won't buy the company?

I think you have two options:

Option 1: Talk to the experts, take action, Stay in control???

Or option 2 - take no action, wait for aggressive creditor action or a winding up petition??

What would you choose?

See our case studies page for our new case studies where directors took action and appointed Cheswick to solve cashflow, legal and other complex problems.

Click here for case studies index page

Using a business asset sale, done properly, you can remove the business from an insolvent company. Want to know how? Please click the link above.

PAYE Reporting in Real time. Payments Online

PAYE returns to be done online

In a new initiative called Real Time Information (RTI) all PAYE returns will have to be done online from April 2013

The biggest change is that all employers will have to file PAYE and tax details for their employees online at the same time as when wages are paid – rather than at the end of the tax year. The way it currently works the HMRC only knows the true liabilities on the 19th of May following the end of the tax year when the P35 is filed.

Failure to file these returns online in "real time" will result in fines from £2,000 for smaller businesses and much more for large businesses. HMRC are likely to know about businesses that are late with payments at a very early stage. This means that companies need to be ready to talk to HMRC earlier.
If your business is having problems paying PAYE now, get ready for a more aggressive HMRC approach. Call us for advice.

Cashflow problems, selling your company?

Never the best time to sell, but if you are unwilling to keep battling cash flow problems, contact us.

Cheswick will acquire struggling companies for our turnaround teams to drive the business forward.

No fees or costs to find out more, just call now on 020 7416 6677

Deloitte's Khan appointed administrator to Comet Group

Neville Khan and partner appointed joint administrators over largest retailer failure since Woolworths.

Company will trade in admin for a period whilst buyers sought. Is this a glorified liquidation??

Will Maplin now buy Some Comet Stores

After my post saying "who says retail is dead?" Maplin reported to be in the frame to buy some stores from Deloitte who will be appointed as administrators over Comet Group Limited next week.

Small nimble and well managed businesses can still survive and grow, despite the dinosuars of their industry dying.