Refinancing via CVA
Blake-Turner advised two associated groups of companies. One group held property and the other a construction business.
The construction business was refinanced by first exiting the two groups’ existing major institutional lender. It was persuaded to transfer most of its debt from the construction group into the property group by virtue of some external funds being invested to reduce the lender’s overall exposure.
The key trading company within the construction group then proposed a creditor’s voluntary agreement (CVA) for 12 months. The major creditor, HMRC, consented and new working capital was introduced by way of a factoring agreement with a niche invoice discounter.
The CVA was a complete success with creditors paid 100p in the £ and the property and construction businesses now on a secure financial footing.