£3m owed to creditors as modular building firm pins its hopes on CVA

MODULAR building business Benchmark Pods reportedly owes £3m to creditors following a cash flow crisis.
The Hull-based business is looking to its supply chain creditors to help save the business, according to Construction Enquirer.
It has proposed a company voluntary arrangement (CVA) which would see unsecured creditors receive 20p in the pound on its debts. They will receive nothing in the event that Benchmark Pods is liquidated.
21 staff work at Benchmark, which reportedly owes unsecured creditors £2.4m – £1.3m of which is owed to subcontractors and suppliers. £470,000 is allegedly owed to secured creditors.
Benchmark Pods counts Colin Tynan as sole director of the business. On July 6 it was announced that a meeting of creditors would take place later in the month on 15 July, though the result of the meetings are unclear.
Its registered address changed in the time to that of Clark Business Recovery in Leeds, but reverted back to its Bankside address in Hull by August.
Potentially a new company could be incorporated in a pre-pack administration to purchase Benchmark’s assets and re-employ “some” staff – though it is unclear how many at this point.
A meeting of creditors is scheduled for 6 September.