Print this page ]
|
|
|
|
|
|
|
|
||
| ||||
|
[ Print this page ]
|
||||
| ||||
|
|
|
|
|
|
|
|
||
| ||||
| ||||
| ||||
|
|
|||
CVA
|
|
Thwarting the bully customerStephen owned and managed a small groundworks company, mostly working for national housebuilding names. On a particularly large contract with one customer, a dispute arose resulting in the customer withholding substantial payments, no doubt hoping that Stephen would not have the financial strength and would bow to the inevitable. Stephen was not easily defeated however and commenced litigation to recover the full sum. The customer responded by all the usual delaying tactics to force Stephen to accept a much smaller payment than claimed in settlement. It looked like the strategy would succeed when his solicitor referred him to us. We have an innate sense of fairness and immediately took up the cause. We proposed a CVA for Stephen's company that froze payment of existing liabilities, with future supplies being obtained on a pro forma basis paid for out of the existing income from other contracts, pending the outcome of the litigation. Stephen's creditors also quickly took the point that the customer was simply a bully and in principle should not be allowed to succeed. Furthermore, Stephen's ability to pay them depended on a successful outcome. Once the CVA was implemented, which immediately released the cash flow tensions, the customer backed down and agreed to negotiate sensibly so that a proper settlement was made. This was distributed to creditors and the CVA concluded.
|
|
|
|
|
This document explains the relevant position only in general terms. We do not intend it to be used as formal advice about a specific situation, for which you should consult with a qualified insolvency practitioner and not rely upon this document. Portland would be pleased to advise you formally and you should contact one of the directors listed to arrange this. Portland regrets it is unable to accept any responsibility to anybody who seeks to rely on this document. |
|
Back
Top of Page