business acquisition (cva)

[joe grimes]

hi all, i was looking for some advice, i have worked for a company for 24years but over the last 12 years a new owner took over, everything was good at start but then trouble started, our suppliers started phoning enquiring about bills, a few wages bounced but then in december 2013 over the christmas holidays the company went into cva, nothing has changed since, to be honest suppliers are phoning even more now and it looks like things are going to come to a head, now heres the rub, the boss has put it to myself and another member of staff that he would be open to selling the business maybe winding it up after selling us machinery etc, my question is, would i be liable to his debts even after him winding up and would i be liable to other staff committments or would hmrc look into sale of machinery etc. any advice would be great, go easy on me

 

[Mr D]

You say he's open to selling. Would you be acquiring the assets alone? Or you wanting to aquire the company in full as owner and shareholder?

 

[joe grimes]

he intends to sell us the assets and goodwill but i didnt think he could sell either under cva. i think he wants to sell to us then go insovent so was wondering would i be liable

 

[Gavin Bates]

Hi

First of all you need a copy of the CVA. It may include a clause which stops such a sale.

It would be better if you buy direct from the IP if he closes down.

You also need to care of the potential of a TUPe transfer of employee rights. This will need a specialist solicitor advice.

Hope this helps.

Regards

Gavin

 

[Mr D]

he intends to sell us the assets and goodwill but i didnt think he could sell either under cva. i think he wants to sell to us then go insovent so was wondering would i be liable

He'd be selling at the market rate?

 

[Clinton]

Do not buy the assets without getting specialist advice!

 

[Lisa Thomas]

If the CVA fails the Company will be liquidated and you may need to acquire the assets off the Liquidator.

However, depending on the terms of the CVA, the assets in the CVA may be held on trust for the CVA creditors so it might get a bit complicated.

The Company may need to put forward a variation to creditors to get permission to sell the business/assets and close the CVA early.