Duff & Phelps, has successfully advised the shareholders of a family-run veterinary chain on its restructuring following a significant HMRC arrears position.
The Corporate Finance Network member firm exclusively covering the Lincolnshire area, Nicholsons Chartered Accountants and Business Advisors, approached Duff & Phelps to assist their client following a c. £350k HMRC arrears position.
The Duff & Phelps team, led by Managing Director, David Fleming, explored the ability to negotiate a Time To Pay arrangement, as well as considering other restructuring options available to the Company. David led meetings and correspondence with HMRC and it was determined that placing the business into a Company Voluntary Arrangement (CVA) would be the most beneficial outcome for the company and its creditors.
Duff & Phelps advised the shareholders on various aspects of the restructuring including engaging lawyers to arrange a Validation Order, assisting in drafting the CVA proposals and negotiated with the HMRC Voluntary Arrangement Service.
The outcome was the successful implementation of the CVA, allowing the Director to maintain control of the business and securing the jobs of 80 employees. The CVA also provided for a 100 pence in the pound expected distribution upon completion, after an initial estimate of approximately 4 pence in the pound.