The sheer scale of Squibb Group’s financial troubles has been laid bare in the creditor’s list issued as part of the Company Voluntary Arrangement (CVA) the firm is currently pursuing to safeguard its survival.
Documents shown to DemolitionNews show that the company owes more than £23.3 million to around 300 creditors. Unsecured creditors are owed £13.8 million.
According to an article in today’s Construction Enquirer, the Squibb Group turnover for the year to January 2022 was just £30.9 million.
Suppliers and subcontractors owed money are being asked to agree the CVA which could see payments of 65p in the pound on debts compared to receiving just 1p in the pound if Squibb goes into liquidation.
Three quarters or more in value of creditors need to agree for the CVA to pass.
The five-year CVA deal would see Squibb make monthly payments of between £100,000 to £160,000 as it continued trading.
The company struck a deal with HMRC last year for extra time to pay tax arrears of £4.4 million but a request for a further extension was rejected and the tax authorities have issued a winding-up petition which is due to be heard later this month.
Squibb has sold and leased back its headquarters raising £8 million and the Squibb family has loaned the business £4.2 million which could make the acceptance of the CVA more likely.
