The business was incorporated in 2006 and operates as a theatre production company, providing casting, production and design services across Europe.
Reason for Business Failure:
The business was unable to continue to trade as a result of the COVID-19 pandemic and lockdown requirements as theatres were forced to temporarily close.
The business sought business interruption loan funding and made use of the Government's furlough scheme but was unable to maintain the operating cash flows required and was considered no longer financially viable.
The insolvency practitioner was appointed to undertake the Creditors Voluntary Liquidation.
Conclusions:
The business was well run and had a solid reputation in its market.
Unfortunately, the impacts of the COVID-19 pandemic did irreversible damage to the business as it was unable to trade.
At the point the Director applied for the original policy in 2018, the impacts of the pandemic could not have been reasonably predicted and demonstrates how unforeseen circumstances can take a successful business out of business in a relatively short period of time.
Final Settlements:
Lender agreed at £50,000
£30,000 Total Claim Paid
£20,000 Insured's Contribution
£2,600 Total Paid Out in Fees
Support provided by Purbeck Insurance:
Pre-insolvency business advice.
Introduced for possible refinance of existing facilities and repayment holidays.
Personal Guarantee negotiator instructed to help reduce outstanding obligations under the Personal Guarantee
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