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Jones, Smith and Co is a firm of Solicitors.
The partners, John Jones, Simon Smith and David Davies have
realised that the partnership is unable to pay its debts and
is insolvent.
They have decided to continue with the
partnership and to propose a PVA in order to repay its creditors.
As individuals each partner is solvent.
The only assets that the partnership
has, is some office furniture, which will realise a minimum
amount. They propose to continue in the partnership and that
each of the partners will offer 50% of the equity in their
properties together with monthly payments.
They feel that this would be acceptable
to creditors for as a result, all creditors would be paid
in full within 3 years.
If any creditor was not to accept the
PVA as proposed however, that creditor could then take enforcement
action against the personal assets of each solicitor.
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