Your Space seeks CVA deal
SERVICED office business Your Space is hoping to strike a deal with its creditors through a Company Voluntary Arrangement (CVA).
In a market statement the AIM-listed company, whose shares were suspended on Tuesday, said it was working with insolvency practitioners on the proposed deal.
A CVA, which has been used by JJB Sports and Focus DIY this year, will allow Your Space to agree to pay a portion of its debts, but the deal must be approved by at least 75% of creditors.
The Liverpool-based company said a letter had now been sent to creditors. A further announcement will be made as soon as the terms of the CVA have been finalised.
On Tuesday Your Space requested the suspension of its shares after talks with a potential buyer for parts of the business came to an end. It had been in negotiations for a number of weeks in a bid to raise additional finance.
The AIM-listed company has moved away from property investment to focus on providing serviced office space, such as St James’ Court, pictured, in Manchester. In its most recent results – the half-year to September 30, 2008 – the group made a pre-tax profit of just £2,000 against £2.48m the previous year. Turnover for the six months was down to £3.72m from £9.61m.
