Quote:
Originally Posted by jj20x
If they are proposing a CVA they would certainly have a liquidity problem. A CVA usually involves staged repayments to creditors over a period of time, say 6 years. It isn't particularly attractive to offer 1% repayments to their creditors over a 6 year period, they would be lucky to get the approval of 75% of their creditors. It's also worth noting that, even if approved by the creditors, many CVAs fail within the repayment period.
|
I would have thought that they would have tried to sell the business for a nominal fee like £1, with the new owner taking on the debts or dissolved the company and replaced it with another to rid themselves of any debt.