CVA versus Pre packs – The Great Debate
With H.M. Governments Insolvency Service planning yet another review of the current practices regarding pre-packaged administration sales (pre-packs), this thorny subject once again comes under the spotlight. The Insolvency Service estimates that 25 per cent of all administrations are pre-packs, of which around 85 per cent are sold-on to parties already linked to the company.
ReadKSA Group Sells Sharda Glass Business in Pre Christmas Pre Pack
Eric Walls and Wayne Harrison confirm that, acting as administrators, they sold the business and assets of Sharda Glass Limited on Friday 20th December to CCPE Architectural Glass Limited.Sharda Glass is a specialist supplier of flat and coated glass to the construction and industrial sectors. Based in Hayes, Middlesex, the company had been advised by turnaround experts, from KSA Group, since late October 2013.Having grown quite rapidly in the past couple of years the company suffered from a sharp deterioration in its financial position in the last few weeks of December 2013, which put unsustainable pressure on its cash flow. At the time of its collapse Sharda Glass employed 65 employees.Having looked at the possibility of restructuring the company’s debts through a company voluntary arrangement (CVA) the directors of Sharda Glass and their advisors concluded that a CVA would not be appropriate. Several buyers had approached the company and KSA Group, so a decision was taken to market the business and assets for sale. Consensus Capital Private Equity Limited was the successful bidder and it formed a new company called CCPE Architectural Glass Limited to acquire the assets from the administrators who were appointed on 20th December 2013.Commenting on the sale, Eric Walls KSA Group’s national insolvency director, said, “We endeavoured as we always do, to try and find a non administration solution. However the scale of the debts and the business problems meant that this option was not available. Having sold the business to a well capitalised buyer we managed to maintain 65 jobs for employees, the continuity of the business for its customers and we believe a better result for stakeholders.”Creditors should contact KSA’s Gateshead office on 0191 482 3343 for further information if required.Contact Eric Walls 07787 278527 or Keith Steven 07974 086779 KSA Group Ltd Level 7 Tower 42 25 Old Broad Street London EC2N 1HN 020 7877 0050 www.ksagroup.co.uk www.companyrescue.co.uk
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