Värmland District Court have decided to settle Cabby Caravan AB:s proposal of a deed of arrangement on the 21th January 2015. By settling the deed of arrangement the Company reconstruction is completed.
What is a Company reconstruction?
A Company reconstruction is a way for companies suffering from financial difficulties to restore their financial balance. The reconstruction is going on during a period of three months at the time up to maximum of a year under supervision of the reconstructor. During this period the reconstructor is negotiating with the creditors and suppliers to decrease the amount of debt and find a solution so that the company can regain its profitability. Cabby Caravan AB:s creditors have been offered a deed of arrangement on 25 % of their claims. The deed of arrangement have been voted for with a majority decision of necessity and have been settled by Värmland District Court.
What will happen now?
Cabby Caravan AB will now carry on with their business.
How are the suppliers handled?
Because the Company reconstruction is completed Cabby Caravan AB no longer need their orders to be permitted by the reconstructor. Goods and services can be delievered at an invoice with regular terms of payment.
The debts included in the deed of arrangement are to be payed on the 21th January 2016 at the latest.
How are the employees affected?
The employees will recieve their paychecks from Cabby Caravan AB furthermore.
Are the issued guarantees sufficent?
Yes, the guarantees undertaken by Cabby Caravan towards clients and retailers remain sufficent.
For questions regarding the reconstruction, please contact the Company reconstructor Henrik Nilsson, or lawyer Katarina Karlsson. They can be contacted on e-mail firstname.lastname@example.org or telephone 054-15 73 10.