Sports & Football Club agrees a successful Company Voluntary Proposal (CVA) with its creditors - Case Study
Ten pence in the pound agreed in football club CVA
This is an actual case but for the purposes of explanation we will give the company the fictional name of Plymouth Football Limited
That sports club that had recently built its own clubhouse, bar and leisure facilities was saved from going out of existence by a 1986 Insolvency Act Company Voluntary Arrangement.
Under this CVA the Directors of Plymouth Football Ltd clubbed together to raise £20,000. That sum was offered to creditors owed £200,000.
The creditors accepted that 10 percent dividend. The alternative open to creditors was to receive nothing at all. The actual unnamed company involved is based in Wales and continues as a Welsh League football unit to this day.
We can provide more information on Company Voluntary Arrangements for Sporting organisations.