Individual Voluntary Arrangement (IVA)

Overview:

  • Office cleaning contractor established for 35 years with a turnover of £2M
  • Family member employee defected taking 50% turnover away
  • Debtor suffering health problems, some age-related
  • HMRC arrears built while attempting to replace lost turnover

Investment:

  • ABL £100K
  • Bank £75K
  • HMRC £450K

Outcomes:

  • Debtor sold business to employees on deferred consideration per independent valuation
  • The creditors received a 47% return

 

For more information on IVA’s, please click here