Sit-up Ltd in Bid to Price Drop its debt repayments
Following several months of speculation over its financial state, following the company's acquisition by Tnui Capital from German company Auerlius AG last December, independent shopping TV website shoppingtelly has posted details of the CVA announcement, which hopes to safeguard 350 jobs.
Will Wright, partner at financial, audit and tax advisory company KPMG said: “The restructuring entails a £6 million investment from retail entrepreneurs Paul Wright and Val Kaye, which is conditional on the CVA being approved by creditors.”
“In recent months, sit-up Limited has undertaken an enormous amount of work to restore margins and is developing a new operating model which will see it link with its suppliers in a more direct way. If agreed, the CVA, coupled with the investment from Paul Wright and Val Kaye, will be the final piece of the jigsaw, enabling the company to right-size its infrastructure and putting it on a much sounder footing.”
On Freeview, sit-up Ltd hires multiplex capacity on SDN and Arqiva operated multiplexes for its two channels, which are broadcast on Freeview channels 23 and 37. On Sky, the two sit-up channels have recently swapped positions in the Sky EPG. Until 2009, the channels were owned by Virgin Media's TV arm.
According to Government website gov.uk, a Company Voluntary Agreement can be used "to pay creditors over a fixed period. If creditors agree, your limited company can continue trading."
The Agreement consists of an arrangement covering the amount of debt [the company can pay off] and a payment schedule.
The sit-up Ltd creditors meeting, which will determine if the Agreement is approved is due to take place on 18th March 2014 at KPMG offices in Salisbury Square.
Under the rules governing CVA's, gov.uk advises that "it must be approved by creditors who are owed at least 75% of the debt", otherwise voluntary liquidation may follow.