Rival Envelope Companys creditors have accepted its Company Voluntary Arrangement (CVA), through which it will pay creditors under a third of its 6m debt over five years.


The agreement, put forward on behalf of the company by insolvency practitioner Langley & Partners, was approved by 94% of creditors, who will receive 32p in every Pound but nearly 4.1m will be written off as bad debt.


A number of paper companies are listed among the creditors, including: AIPM Paper Industry, owed 83,729; Holman Kelly Paper, a creditor for 59,800; M6 Paper Group, owed 82,019; and Capital Paper subsidiary Panther Paper, which is owed 1.45m.


Capital Paper company secretary Graham Berry said: We have business insurance and supported the CVA, so as far as were concerned its business as usual. Thats the benefit of being part of a group youre big enough to pull together.


ICSM partner Steve Mepham said: Over 4m is a lot for the industry to absorb yet again. An awful lot of Rivals suppliers, who didnt have insurance, will have to tighten their belts.


Directors of the Deptford-based company appointed Langley & Partners in February (PrintWeek, 2 March) after an indemnity insurance company started proceedings to recover 70,000.


The 10m-turnover company was the subject of a management buyout fronted by managing director Tony Collins, finance director Robert Binfield and sales director Joe Castle in 1996.


Story by John Davies