Quality Insolvency Services Ltd

The book of a volume IVA provider has been sold after the company experienced significant cash flow pressures, causing it to be unable to meet creditor payments.

Since it was incorporated in 2015, Quality Insolvency Services Ltd has provided debt management services to individuals. Balbec Capital, the company’s ultimate funder, has advanced in excess of £23 million since 2019, funding the acquisition of IVAs through internal and external channels and allowing the company to grow to employing over 60 members of staff.

The supervision of IVA cases, including creditor meetings and cashiering, was outsourced to Freshstart Insolvency Limited.

The company ran into financial difficulties as a result of the additional staff, as well as a relatively large marketing drive. Discussions between Balbec and the company culminated in the company entering administration on 23 November 2022, with Anthony Collier and Simon Farr of FRP appointed as Joint Administrators.

The Joint Administrators entered into a funding agreement with Balbec, allowing them to continue to trade the business and protecting the value in the IVA book so that it could be transferred to an alternative provider.

The Joint Administrators retained the majority of the staff during a brief period of stabilisation, following which they were made redundant. Freshstart have continued to provide supervisory functions.

Now, the Joint Administrators have completed a transfer of the IVA book to Freshstart, who know the book well, enabling continuity of service for customers and creditors of the IVAs.

The Joint Administrators have been assisted by Walker Morris. Their Proposals can be found HERE.