There is an update to this blog post in April 2013 here.
There is another update to this whole sorry Direct Fruit Supply saga re Michael Marcus, the MD growing cannabis and getting caught here 6th September 2013.
You heard it here first.
Second business in what, three months to have problems; first Bruce Oliver and now Direct Fruit Supplies (DFS).
I am pretty angry with Direct Fruits Supplies, Leeds, as I have been chasing our money fairly hard. The last time I spoke to someone in accounts, they said, ‘you haven’t been shouting loud enough’. I could not believe it and was hopping mad.
Today, I chased again, only to be told that the business was in a bit of a mess with its accounts and they were going to write to all the creditors to enter in to a CVA, but that the business was solvent and still trading. How do you know, I asked, if your accounts are in a mess? I was then bamboozled.
Here is a bit of info about CVAs:
A Company Voluntary Arrangement CVA is a procedure which enables a company to reach an agreement with its creditors about how debt is to be repaid. The CVA may provide for partial or full repayment depending on what the company can reasonably afford to pay.
Creditors do support CVAs if the alternative is liquidation with little or no return to creditors. The Proposal must, however, be reasonable and achievable.
A CVA can only be proposed by a company if it is insolvent or contingently insolvent. The CVA requires the approval of 75% of the voting creditors. If approved, the CVA binds all creditors irrespective of how they voted and allows the directors to retain control of their company.
A CVA aims to serve the best interests of the creditors while allowing the company to continue trading and to keep the work force in employment.
The are several components that are vital to a successful CVA proposal. There must be a business plan to return the company to profitability, in other words directors must accept there is a need for change. The proposal must be viable and be likely to be considered favourably by the creditors. Working capital in addition to a review of credit repayments need to be arranged.
Here is a response from Michael, the MD at Direct Fruit Supplies in response to the above:
Direct Fruit Supplies (Leeds) Ltd
T: 0113 2670089
F: 0113 2300605
M: 0775 3570472