Leicestershire manufacturer enters administration after CVA collapses

A Leicestershire manufacturer has been placed into administration after it failed to meet the obligations of a company voluntary arrangement.

Midlands Metal Products, of Desford, has been operated under a company voluntary agreement (CVA) since late July, but this has failed and PKF Cooper Parry has been brought into act as administrators at the firm.

The CVA was voted through in July by Midland Metal Products’ creditors, who between them were owed £819,823.78. HMRC was the biggest creditor, being owed £574,288. Leicestershire-based CJ Upton & Sons was owed £122,442.

Under the terms of the CVA, Midland Metal Products was due to make monthly contributions of £2,500 to creditors for the first seven months, rising to £17,500 a month after three years. The CVA would reach completion once creditors had received a minimum dividend of 60.4p in the pound.

The CVA was voted through unanimously, but after only four months it has failed, with PKF Cooper Parry being brought in as administrators this week.

Midland Metal Products is owned by Centmetal Property. It supplies the machine tool, construction, refrigerations and diesel engine sectors, among others.