Our sister company, Cashsolv, was consulted by the directors of a company, who were subject to a winding up petition, but which had sold its shares in a wholesale newspaper distributor to a third party. Unfortunately, the company had not received the full purchase consideration and £2.2m was left owing. Subsequently, the purchaser was placed into Administration and it was anticipated that the unsecured creditors would receive dividends of between 14.1p and 24.7p in the £.
The biggest issue this company faced was the timescale for the payment of the dividends from the company that had been placed into Administration as HM Revenue & Customs (HMRC) had issued a winding up petition against the company.
Read the full article on our sister company's website to hear how a Company Voluntary Arrangement (CVA) afforded the company the time to allow the dividends to be received and for the creditors to be paid in full.