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Fife-based alternative broadband operator Gigaloch, which had been rolling out a new full fibre (FTTP) network into rural parts of West Cheshire (England) and Scotland until they ran into financial difficulties last year, appears to be suffering a delay to implementation of a Company Voluntary Arrangement (CVA) – due to the receipt of a secondary preferential claim from HMRC.
The operator, which primarily focused on building across remote rural parts of Scotland (Perth and Strathearn, Highland Perthshire and Inverness-shire), originally aspired to cover 200,000 UK premises. But it’s unclear how far they got with that aspiration before running into financial difficulties. A quick look at their recent records on Companies House shows plenty of developments related to this.
One of those developments was the reaching of a CVA just over a year ago. A CVA allows a company with debt problems, or that is insolvent, to reach a deal with its business creditors (i.e. paying them back over a fixed period), which usually means that the company can continue trading while slowly paying back what they owe. Such agreements are often preferable to failure, especially if the business is deemed to have a viable foundation.