We will review your business, using our in-house accountants and we will put together an informal Debt Management Plan to pay creditors over an extended period of time normally 36 to 60 months. We will immediately talk to them and negotiate a stay of execution or put in place appropriate defence measures to resist any attempt to take control of your business assets. The proposal will include a detailed evaluation of your business and cash flow projections, which will help you get a clearer picture of where the business is heading, helping you avoid problems in the future. We have set out below a copy of the type of Debt Management Proposal we will produce, yours will of course depend on the complexities of your business.

Once we have agreed terms with your creditors and you are happy with the terms agreed, you will commence making regular monthly payments into the plan. As we said we normally aim to spread the existing debt over 36 to 60 months making it manageable within your cash flow.

Benefits

The essential benefits of entering into a Debt Management Plan with us are as follows:-

• We will stop any enforcement action being taken against you or your business
• We will immediately improve your cash flow by spreading payments to creditors over a long period of time
• We will review your business and help you to see where the businesses cashflow is going in future
• The Debt Management Plan is an informal arrangement and will not affect your personal or business credit rating
• You can add more debt to the Plan if necessary as your business grows
• We have a range of services that can protect your business from meltdown and help avoid any personal guarantees.

Fees

We charge a fee of 10% plus VAT of the total debt or £5,000 plus VAT whichever is the greater. We normally ask for £5,000 plus VAT on instruction, but in special cases will negotiate terms to fit in with your cash flow, with the balance being deducted equally from the amount we agree to pay creditors over the period of the Debt Management Plan.

Next Steps

In order to proceed we ask you to send us details of all creditors that are pressing immediately so we can contact them and advise them that we are going to propose a Debt Management Plan and stop any enforcement action.
We will then contact you and arrange to draft the detailed Debt Management Plan for your approval and then we will negotiate the agreement of all creditors to the Plan on the terms discussed.

If you have any questions or we can provide any further information please do not hesitate to contact us, we are available 24/7.

Proposal for company Debt Management Plan (D.M.P.)

Name of Company: XYZ Limited (The Company)
Business Address: The Street, A Town, England
Date: …………………… 20..

1. INTRODUCTION

XYZ Limited was formed in 2007 with the merger of two existing businesses, which had been based in London, and ABC Limited which had been based in Newcastle.
The principal areas of business were those of retailing consumer gifts and cards through retail outlets.
The original executive directors were Mr. Black (resigned Feb 2006) and Mr. White (resigned 2008), nonexecutive directors were Mr. Grey (resigned Feb 2009) and Mr. Brown (Resigned Mar 2009).
Four employees were appointed directors in April 2009 following a management buy-out, Mr. Red was responsible for finance (Mrs. Yellow is responsible for retail operations Mr. Orange is responsible for account handling and, Mr. Pink is responsible for new business development and sales.
The first two years of trading (2010-12) produced losses and resulted in the resignation of Mrs. Yellow and cutbacks in staff levels. The following year (2013) the company then moved into profit.
In June of 2014 our then auditors, found themselves in difficulties and ceased to trade. The directors sought advice from the company bankers with the result that in September 2014, new auditors were appointed. The directors were unable to acquire all the files from the old auditors. It transpired that those files, along with those of other companies had gone ‘missing. The new auditors had difficulty arising from the absence of those key files. The auditors were also heavily dependent upon information supplied by the internal accountant.

2015 saw the arrival of a major discount retailer who took up occupational premises geographically close to our existing shops resulting in sales declining by over  £800,000 per annum. Around the same time, the business was also experiencing a downturn in sales as a result of the migration of purchasing through online portals owned by competitors. This made further staff cutbacks necessary across the business.

From its inception, the company was heavily involved in spontaneous gift special occasion card purchases, mainly with retail outlets in shopping centres across the UK. Due to no doubt to changes in consumer purchasing habits, this was an area of business that was becoming increasingly more competitive and it became apparent that to stay competitive the business had cut margins and the already tight profit margins were becoming smaller and smaller.

The directors asked the auditors to review the profitability or otherwise of this area. Their initial report indicated that the company was only breaking even in this area of business and most probably losing money on what was about 50% of the turnover. Based on these findings, it was decided that the company should withdraw from this area of business and concentrate on developing its online presence.

At around the same time, the new auditors questioned the high levels of stock that were held and its value. With a turnover of in the region of £1million and stock figures of £250,000 didn’t initially seem unreasonable provided it could be sold. As the audit progressed, a growing number of discrepancies in the internal accounting procedures became apparent.

Apart from this high level of stock, which turned out was far less than stated, PAYE/NI and VAT were in arrears and the company had incurred surcharges. Those findings meant that the previous year’s results had to be restated turning what had been a profit into a loss. The internal accountant was then asked to leave the company.

Swift action was needed to avert the collapse of the company. Mr. Pink along with the assistance of the auditors took control of finances to prepare regular management accounts. Further staff cuts were made. All salaries were reduced with the directors taking the largest share and pension payments were ceased. Mr. Pink and Mr. Orange sold their company cars and in addition injected personal monies. The structure of the company was reviewed and new budgets and working disciplines were introduced. Unprofitable lines were shed and on the advice of the auditors, the directors met with Director Help to discuss the situation, and further remedial actions were then put in place.

In early 2019 the bank account was moved from X Bank PLC to Y Bank PLC. In addition to an overdraft facility of £200,000 Mr. Pink and Mr. Orange, they took out a further personal loan totalling £80,000 which was injected into the company. The company overdraft was secured by personal guarantees and backed up by outside security. The company earned a modest profit for the year to March 2019. In consequence pressures from creditors eased considerably.

In comparison to 2014/5 the performance from April to August 2019 was much healthier and the overall position was considerably ahead of the position at that point in the previous year. The business development plans were continued and energies were focused on developing the ‘Internet Retailing’ side of the business in which potential was anticipated.

It had been the intention for Mr. Orange to withdraw from the business at the end of 2017. However, with the change of emphasis in the nature of the business, Mr. Orange proposed that he should bring this forward and presented the other directors with a proposal for an earlier withdrawal. In this Mr, Orange proposes to make a loan to the company of £115,000 and also pay off half of the outstanding balance on the £80,000 personal loan he and Mr. Pink had taken with X Bank PLC. This withdrawal would also benefit the company by way of reducing overheads. In exchange for this capital injection, it is proposed that Mr. Smith will take a second debenture behind X Bank PLC.

September had seen further declines in sales. This coincided with a number of bad debts, including a major wholesale export client which was experiencing its own financial difficulties resulting in wrangling for payment and prompting the company to instigate legal proceedings. As a result, only a percentage of the outstanding debt has been received and over a period of months, this has had an extremely negative effect on the company’s cash flow.
October and November 2017 figures were disappointing. In the meantime, the company has gained a considerable amount of new and profitable business from internet sales. However, the directors could see that cash flow benefits would not arise from the increased work for at least eight weeks.
The future direction of XYZ Limited is a substantial change of emphasis. The traditional core elements of the business:- those being retail and some wholesale of cards and gifts are no longer profitable in today’s market.
However, the most profitable area of the business  is online sales which are growing.

These services are:-

Online cards, flowers, gifts, and special occasion items. The business emphasises the personal touch for customers. If a customer has someone in mind, the business has something to wow their nearest and dearest. With  personalised gifts, customers can add a special name, photos or even their own handwriting to cards!

Confirmed sales for completion for the period December 2019 to October 2020 totalled £1,243,000 and they growing at a compound rate of 10% per month.

The directors then gave consideration to placing the company into  Liquidation and then re-starting a new company. The directors concluded, however, that they had no wish to see any creditors lose money,  as the prospects for the business now appeared to be promising, they would wish to put forward a Debt Management Proposal. The objective is to repay all creditors in full over time.

The directors discussed the position with the company bankers and on their advice sought guidance from the auditors. The auditors advised us to meet with Director Help and this proposal follows as a result.

It is apparent from the Statement of Affairs shown at Schedule 1 that if the company was now placed into  Liquidation, neither preferential nor unsecured creditors would receive any dividend at all as the stock would then become worthless.

On a liquidation, it can be seen from that same statement that X Bank PLC would suffer a shortfall of some £138,000.
XYZ Limited is essentially a “people business” and it is in the light of substantial growth in online sales that the following proposals are made.

2. DEBT MANAGEMENT PROPOSALS

2.1 It is proposed that:
2.1.1 The company pays into this voluntary arrangement, the sum of £3,500 per month for a Four year period.
2.1.2 Mr. Orange introduce £115,000 into the business, which will be used to reduce the X Bank overdraft. Mr. Orange would then be granted a second debenture.
It is further proposed that Mr. Orange would be treated as a “deferred creditor” and would not share in any part of the dividends paid to creditors out of the pool of money arising from the £3,500 per month payable into this arrangement.
2.1.3. The ‘associated’ creditors totalling £94,745 also be treated as deferred creditors.
Additionally, it is proposed that and Mr. Pink capitalises on his outstanding loan totalling £79,745 which sums are included in the total of £94,745.
2.1.4 In relation to X Bank PLC (The Bank) the following proposals are made:-
that the company collects in the existing debtors totalling £64,000 and pay that in its entirety to the bank. (The bank is entitled to those monies in any event as they hold a fixed charge over trade debtors).
that the old bank account is frozen at its present balance of £198,000 and that the £64,000 expected to be received from the existing debtors be paid into that old account.
that the £115,000 to be paid in by Mr. Orange be paid into that “old” bank account.
the consequences of the above transactions are that the directors expect the old bank account to reduce as follows:-

	£	£
Present bank balance		198,000
Less:
Expected debtor proceeds	60,000
Cash from Mr. Orange	115,000
		175,000
Revised bank balance		23,000

that the bank considers providing the company with a “new” overdraft facility based on the cash flow projections and profit projections shown in schedules 8 and 9.
(The director, Mr. Orange would continue to provide outside security to X Bank PLC for the residual balance on the “old” account and the balance on the new account).
that the company pays to the bank a monthly sum of £1,000 (being capital and interest) to extinguish the residual balance on the “old” account over a period.
2.1.5 The effect of these proposals in terms of the dividend payable to preferential and unsecured creditors is calculated in Schedule 6 attached.
From that schedule it should be noted that:
preferential creditors would be paid in full on the first anniversary of the arrangement.
unsecured creditors would receive dividends on the second, third, and fourth anniversaries. It is proposed that each of these dividends be one-third of the amount owed to creditors, such that all unsecured creditors will have been repaid in full by the time of the fourth anniversary.
2.2 To minimise the Sponsor’s costs, it is additionally proposed that the Sponsor will not be involved with the subsequent trading of this company if this proposal is agreed except to the extent set out in Clause 2.19.
2.3 Schedule 1 to this proposal lists all of the assets of the company showing estimated net realisable values, on a going concern basis, fewer amounts owing to secured preferential and unsecured creditors.
2.4 It is proposed to deal with the claims of creditors as follows:-

SECURED CREDITORS

X Bank PLC is the only secured creditor. X Bank PLC has a fixed and floating charge over the assets of the company.
Nothing in this proposal, however, restricts the rights of X Bank PLC at present or in the future of appointing either a book debt receiver or administrative receiver.
A “new” bank account has already been set up with Y Bank PLC for post D.M.P. trading. An overdraft on that new account will be requested by the directors based on; the attached cashflow forecasts (See schedule 9). The balance on the “new” account is presently a positive figure of £11,769.

PREFERENTIAL CREDITORS

It is proposed to deal with claims of preferential creditors as follows:-
Preferential creditors arising from the pre D.M.P. period will enjoy the same priority, as if there had- been a  liquidation
.
It is further proposed that a new additional class of preferential creditor would arise should there be any failure of this arrangement. Such creditors would be calculated within the meaning of Sections 175 and 386 of the Insolvency Act 1986 with the “relevant date” being the date on which the Sponsor issues a “Certificate of Failure of the Debt Management Arrangement”.
Pre D.M.P and post-D.M.P preferential creditors are to enjoy the same priority one as against the other in relation to all of the unpledged assets.
DEFERRED CREDITORS

The following creditors are classed as “deferred”.

	£
Proposed – Mr Orange – Loan	115,000
Existing loans from the shareholders and directors	94,745
Total deferred creditors	209,745

It is proposed that deferred creditors receive no dividend over the four-year life of the arrangement.
It is proposed that £79,745 of the existing loans be capitalised.
Once all pre-D.M.P. preferential and unsecured creditors have been paid in full, the two classes of creditors shown above will no longer be classified as deferred.

UNSECURED CREDITORS

Pre D.M.P. unsecured creditors will rank pari passu for payment. Any such claims which had been inadvertently omitted from the attached statement of affairs or the arrangement and whose total debts do not exceed 10% of the total of all claims lodged will be invited to claim in and be bound by the arrangement. This is subject, however, to the proviso that any dividend already paid will not be disturbed, but lost dividends can be made up from any future distributions.
In the event of this D.M.P. failing, then post D.M.P. unsecured creditors will have a claim as ordinary unsecured creditors then ranking equally with pre-D.M.P. unsecured creditors.

ASSOCIATED CREDITORS

Those creditors “associated” with or “connected” with the company within the meaning of Section 249 of the 1986 Insolvency Act are set out in detail in Schedule 5 attached.
All ‘associated’ creditors are proposed to be treated as ‘deferred’.
2.5 To the directors knowledge, there are no circumstances giving rise to the possibility, in the event that the company should go into liquidation, of claims under:-
Section 238 (transactions at an undervalue)
Section 239 (preferences except to the extent referred to at paragraph 4.3)
Section 244 (extortionate credit transactions)
Section 245 (invalid floating charges)
However, there are 66 creditors -each being for a sum less than £200, which together total £3,637. Those creditors have not been included in this document as it is proposed that the company immediately settle those creditors in full. The directors of the company are of the opinion that that would be the most cost-effective way of dealing with such small creditors.
2.6 No liabilities of the company have been guaranteed by any other party except that the liability to X Bank PLC has been guaranteed by Mr. Smith and Mr. Harrow.
2.7 It is proposed that the D.M.P. last four years.
2.8 Distributions to creditors and amounts thereof are proposed to be made as follows:

Estimated Date	Amount Payable	Type of Payment / To Whom Payable	Estimated Pence In The Pound
	£
Mar 2018	21,966	Preferential	100p
Mar 2019	40,322	Unsecured	33.3p
Mar 2021	40,321	Unsecured	33.3p
Mar 2022	40,321	Unsecured	33.4p
Totals	120,964		100p

2.9 A reconciliation is shown at Schedule 6 detailing the total amount to be realised into the arrangement less the costs of the arrangement, to provide the net figures being the amount distributable shown above.
Any creditor who has not lodged his claim having received 21 days’ notice will be excluded from that dividend, but if the claim is lodged late, that creditor will be entitled to make up that amount from future realisations.
2.10 Sponsors fees for producing the D.M.P. proposal and for dealing with all matters up to and including negotiations with creditors is proposed to be in the sum of £5,000 plus V.A.T. or 10% Plus VAT of the unsecured creditors of the company whichever is the greater.

It is further proposed that the Sponsor recover all third party disbursements and also be entitled to any costs and disbursements including legal costs, which he incurs in connection with any legal action by creditors, unless the court orders otherwise.

2.11 It is proposed that Sponsors fees be based on the time costs of the Sponsors company.
It is also proposed that the Sponsors remuneration shall be calculated by reference to the time spent by the Sponsor and his staff.
The Sponsor’s fees and expenses shall rank ahead of the claims of creditors.
The Sponsor will be entitled to be reimbursed his costs any other expenses incurred in bringing or defending any action in the arrangement unless the court orders otherwise.
2.12 The directors of the company do not propose to offer any additional personal guarantees to creditors in relation to this proposed D.M.P. proposal.
2.13 The Sponsor shall open a current account ……………………..and all payments to the Sponsor shall be promptly paid into such account. The Sponsor shall have the discretion to invest funds surplus to the immediate requirements of the arrangement on deposit on money market from time to time, pending any distribution of such funds.
2.14 If upon termination of the arrangement, any funds held for the purposes of payment to creditors remain in the hands of the Sponsor because any creditor (a) has failed to claim at all, or (b). has not cashed any cheque forwarded to him, or (c), can no longer be traced or, if after the D.M.P. has been concluded, the then former Sponsor receives funds which were not anticipated to have been receivable at the time of closure, such funds will be dealt with as follows:
If the aggregate of such funds after costs exceeds £1,000, a further distribution shall be made to those creditors who are able to participate therein, less the (former) Sponsor’s outstanding time costs and disbursements, if any. If such funds, however, amount to less than that amount, the costs of a distribution are not justified and accordingly, the balance will be returned to the company after deducting any amounts outstanding for any outstanding time costs and disbursement of the (former) Sponsor.
2.15 During the course of the D.M.P., the new trading of the company will not be carried out under the auspices of the Sponsor and the Sponsor will not be involved in or in any way responsible for such new trading.
2.16 During the continuation of this D.M.P. any new credit taken by the company during the course of the arrangement is to be settled by the company ex. the proposed new Y Bank Plc D.M.P. account. That new bank account is being operated by the directors of the company and not by the Sponsor. In the event of the failure of this arrangement, any positive balance on that account will be treated as being available to meet the costs of the arrangement and of the Sponsor and secondly to be available by way of set off against the “old” X Bank account.
2.17 The Sponsor’s functions shall be:
(a) To receive all funds payable into the arrangement (i.e. £3,500 monthly)
(b) To negotiate all creditors claims.
(c) To make distributions to creditors in due order of priority and on the due dates shown in paragraph 2.1.
(d) To retain solicitors, agents, or other professional advisors if required for the beneficial purposes of the arrangement at the expense of the estate.
(e) To receive monthly profit and loss accounts and balance sheets. To forward all creditors annually a summary of the company results and as to the general progress of the arrangement.
(f) To authorise the release of funds from the estate to defend disputed claims where appropriate.
(g) To review on a regular basis whether the D.M.P. has failed in accordance with the criteria set out in paragraph 2.19 below.
2.18 It is proposed that the Sponsor of the arrangement shall be Director Help in relation to the company.
2.19 These clauses deal with the control of the D.M.P. and the Sponsor’s duty should the arrangement be declared a failure.
2.19.1 The arrangement shall be declared a failure if:
(a) The first installment of £3,500 is not received within seven days of the arrangement being approved at the creditor’s meeting called to consider this proposal.
(b) Two consecutive payments of the monthly instalments are not received on the due dates. The due date of each installment, except the first, is on the 31st of each month.
(c) Monthly payments of interest are not paid to: –
X Bank PLC
d) Monthly profit and loss accounts and balance Sheets with supporting, schedules of all key figures are not provided to the Sponsor within 30 days after the end of each monthly accounting period.
2.19.2 If any of the four instances referred to in paragraph 2.19.1 above arise the Sponsor will immediately:
– circularise all creditors and issue a “Certificate of Failure” of the arrangement.
– apply to the Court for the company to be compulsory wound up should the directors not sign notices to call creditors meeting under Section 98 of the 1986 Insolvency Act within seven days of the issue of the Certificate of Failure.

ALTERATIONS TO THE PROPOSAL (Rule 1.3 (3))

This director’s proposal for a Company D.M.P.may is amended with the agreement of the creditors at the forthcoming creditors meeting.

REALISATION OF ASSETS

4.1 It is proposed that the sums realised from the debtors now existing be collected and paid to X Bank PLC under the terms of their debenture.
4.2 It is proposed that the work-in-progress at the date of the creditor’s meeting be utilised as working capital in the D.M.P. period.
4.3 It is proposed the vehicles on finance not be sold but instead used in the continuing business.
4.4 It is proposed that the monthly sums of £3,500 be paid to the Sponsor on the due dates by standing order.
We, the directors and shareholders of the company confirm that this document fairly sets out our proposals to the creditors for a Company D.M.P.and that to the best of our knowledge and belief all statements herein are true.
Dated this …………. day of ………………………. 200 ……… – 
Signed _______________________ , __________________________

Director

Director

(The directors should sign each page and schedules of the proposal)
I received the written notice on the ……….. day of …………………………, 200……… .

INDEX TO APPENDICES

1. Statement of Affairs at …………………….., 200………. .
2. Notes to statement of affairs
3. Notes re assets subject to Hire Purchase and Lease Purchase Agreements.
4. Schedule of Unsecured Creditors.
5. Schedule of “Associated” creditors.
6. Calculations of Dividend.
7. Statutory Information.
8. Profit forecast
9. Cashflow forecast
10. Tabulation of past results

Schedule1
XYZ LIMITED
STATEMENT OF AFFAIRS AS AT …………………. 200………

	£	£
ASSETS SPECIFICALLY PLEDGED
Trade debtors	64,119
Less: Provision for bad debts	4,119
		60,000
Less: X Bank Plc – “Old” Account		198,472
SHORTFALL TO FLOATING CHARGE		(138,472)
ASSETS ON HIRE PURCHASE
See Schedule		3,326
ASSETS NOT SPECIFICALLY PLEDGED
Work in Progress		32,391
Y Bank Plc – “New” Account		11,769
		47,486
LESS: PREFERENTIAL CREDITORS
H M Customs and Excise – VAT	7,243
Inland Revenue – PAYE	14,723
Employees	Nil
		21,966
		25,520
LESS: CREDITORS SECURED BY A FLOATING CHARGE
X Bank Plc – (Shortfall from above)		138,472
DEFICIENCY AS REGARDS FLOATING CHARGE HOLDER		(112,952)
LESS: UNSECURED CREDITORS
Per schedule 4	120,964
Associated creditors per schedule 5	94,745
		215,709
DEFICIENCY AS REGARDS UNSECURED CREDITORS		(328,661)
LESS: SHARE CAPITAL		120,000
OVERALL DEFICIENCY		(448,661)

Schedule 2
XYZ LIMITED
NOTES TO STATEMENT OF AFFAIRS
1. At the time of preparing this statement of affairs, the motor vehicles on hire purchase arrangements have not been professionally valued.
2. The fixtures, fittings and equipment used in the business are held mainly under the terms of lease agreements.
The remaining such assets not under lease arrangements are considered by the directors to be of minimal value.
3. No provision has been made in the statement of affairs for costs that would arise in respect of employees (such as redundancy) if the company were to be placed in liquidation.
4. Should there be a liquidation, the work in progress shown in the statement would be of no value.

Schedule 3
LIMITED ASSETS SUBJECT TO HIRE PURCHASE OR LEASE-PURCHASE ARRANGEMENTS

		£	£
1	L Registered Car
	(acquired 06.07.15)
	at estimated valuation	5,000
	Less: owing to Finance Company	4,168
	EQUITY		832
2	14 Registered Car
	at estimated valuation	5,000
	Less: owing to Finance Company	2,506
			2,494
	PER STATEMENT OF AFFAIRS		3,326

Schedule 4
SCHEDULE OF UNSECURED CREDITORS – XYZ LIMITED
Here there would be a listing of all of the creditors to show their names and the amount owing to each creditor.

Schedule 5
XYZ LIMITED
SCHEDULE OF ASSOCIATED CREDITORS

	£
	39,873
	39,872
	7,500
	7,500
PER STATEMENT OF AFFAIRS	94,745

Schedule 6
XYZ LIMITED
CALCULATION OF DIVIDEND RETURNS TO PREFERENTIAL AND UNSECURED CREDITORS
NOTES
1. It is proposed that the monies loaned to the company, to date, by the directors and shareholders totalling £94,745 not be repaid at all until all. secured, preferential and unsecured creditors are repaid in full. (i.e. the associated creditors will be classed as “deferred creditors”.) In any event, it is proposed that £79,745 of that figure be capitalised.
2. X Bank PLC will be treated as an unsecured creditor to the extent that their loan is not covered by trade debtors. For the purpose of the calculation that follows, that figure is estimated at £138,000. The calculation of that figure is shown on Schedule 1. It is proposed that the £115,000 injection by ………….. be used to reduce the bank borrowing.
After collecting in presently outstanding debts, the liability to X Bank Plc would be £23,000 approximately. It is proposed that X Bank Plc receive a £1,000 per month repayment of capital and interest during the life of this arrangement. X Bank Plc would not share in the accumulated pool created from the Sponsor’s realisations of £3,500 per month.
3. The proposed injection by …………….. of £115,000 on a second debenture be treated as a deferred creditor.
4. The creditors then ranking for dividend and the priority between them is
estimated as follows:

		£
4.1	Preferential Creditors	21,966
4.2	Unsecured Creditors	120,964

		£	£
5	Amount receivable into the arrangement
	48 months at £3,500 per month		168,000
	Less: Costs of the arrangement
	Nominees Fees	3,500
	Sponsors Fees	12,000
	Insurance Bond	1,000
	Disbursements	1,500
	Provision for any other costs	7,000
			25,000
	Distributable to Creditors		143,000
	Distributed as follows:
	Preferential Creditors		21,966
	(Dividend payable on the first anniversary of the arrangement)
	Unsecured Creditors		120,964
	(Dividends payable annually on each anniversary of the arrangement until all such creditors are repaid in full)
	Total Distribution		142,930

Schedule 7
XYZ LIMITED
STATUTORY INFORMATION
1. INCORPORATION
The company was incorporated on the 01.01.1991 as XYZ Limited. The name of the company was changed to XYZ Limited on 23rd February, 1993. The registered number is 101010.

2. REGISTERED OFFICE

The registered office of the company is based at:	The Street
	London

3. COMPANY SECRETARY
The company secretary is
4. DIRECTORS
4.1
4.2
4.3
4.4
4.5
4.6
5. SHAREHOLDERS

	£
	35,000
	25,000
	60,000
ISSUED SHARE CAPITAL	120,000

6. AUDITED ACCOUNTS
The last audited accounts filed with the Registrar of Companies were those for the year ended 31st March, 2019.
Those accounts were prepared on a going concern basis. The auditors report notes, inter alia
“Fundamental uncertainty”… “During June, 2019 the company directors were able to re-negotiate banking facilities for the company which is dependent upon the company’ s achievement of the projections prepared by the directors for the period ended 31st March, 2020”
“The company directors have also had to continue to make arrangements with company creditors to discuss settlement periods for outstanding liabilities. The directors consider that provided the creditors continue to support the company by allowing a further period for settlement, then the company will be able to continue to trade for the foreseeable future”.
The auditors report was, therefore, qualified for these fundamental uncertainties.
The net deficiency shown on the Balance Sheet at 31st March, 2020 was £296,815.

REGISTER OF CHARGES
5.1 On the 01.12.1948, X Bank PLC registered a fixed and floating charge over all of the assets of the company.
5.2 It is understood that the bank have additional security on assets personally owned by certain directors of the company.

Schedule 8
XYZ LIMITED
PROFIT FORECAST FOR THE YEAR ENDED 31ST MARCH, 1998

	£	£
Sales		432,000
Gross Profit at 70%		302,400
Less: Overheads
Salaries	140,000
Interest and Consultancy	99,000
Payments to CVA	9,600
		290,600
NET PROFIT		11,800

NOTES
1. The directors have compiled a detailed profit forecast to back up the summary figures shown above.
2. The interest and consultancy represents the amounts payable to ……….. in acting as a financial consultant and interest on the £100,000 debenture introduced by his company.
3. The D.M.P. payments represent twelve instalments at £3,500 per month.

Schedule 9
XYZ LIMITED
CASHFLOW FORECAST FOR YEAR ENDED 31ST MARCH, 2021

Month	Sales	GP	Payments to Suppliers	Cash Receipts	Bank
	£	£	£	£	£
1
2
3
4
5
6
7
8
9
10
11
12

Schedule 10
XYZ LIMITED
SUMMARY OF PAST RESULTS

	Turnover	Profit / (Loss)
	£	£
Year end 30th June 2010	2,400,000	(88,413)
Year end 30th June 2011	2,300,000	(55,782)
Year end 30th June 2012	2,100,000	51,534
Year end 30th June 2013	2,100,000	12,101
Year end 30th June 2014	1,700,000	(202,949)
Nine months to 31st March 2015	921,000	(66,663)
Year end 31st March 2016	829,000	10,452