Professional Fundraising magazine reports that creditors to direct dialogue company Open Air Fundraising have rejected its plans to alter its company voluntary agreement (CVA).
The professional fundraising organisation had informed its creditors that it would be unable to meet its first half-yearly payment of £181,500 on 30 June 2003. It "went into administration last year with debts of £2.25m" reported the magazine.
The proposal to alter the CVA's terms from six to ten years and temporarily to suspend payments until the company had built up working capital of £300,000 was rejected. Creditors include the Inland Revenue, Customs and Excise and several large charities.
The letter to creditors from Open Air's directors explained the failure to make the first payment. It stated that the "financial performance of the company over the past six months has been far below forecasts. However, the overall debt has been reduced to £1.8m."