PieEaterreadingbedding A question:
A CVA requires the backing of 75% of the creditors.
I'm wondering how's that worked out?
In the BBC blog they mention that the HMRC debt may "only" be about 20% so they may be able to agree a CVA with the other creditors.
Depends who it's owed to.
At Leeds United, the debt owed to a Cayman Island company which Ken Bates denied any links to was substantial, but not enough to take them over the required 75%. Then, the day before the hearing, it was sudenly discovered that there was additional substantial debt (I think in the region of £1M) for advertising services owed to a DAB-only local radio station in the Leeds area (proprietor K Bates). The votes this extra debt brought were enough to make up the 75% in favour of selling the company to K Bates, ahead of other consortia which would have paid more moeny to creditors.