Open Air creditors face lengthy wait to recover money

Charities owed almost ?xA3;1 million by Open Air Fundraising have been told they are unlikely to be paid for at least two years.

The company went into administration this month with debts of ?xA3;2.2 million, of which ?xA3;900,000 is owed to charities.

Creditors include the Children's Society (?xA3;164,353), Barnardo's (?xA3;156,564), Cancer Research UK (?xA3;126,900), Shelter (?xA3;126,765) and 28 other charities.

The Inland Revenue is seeking ?xA3;900,000.

Creditors agreed last week to support the Company Voluntary Agreement proposed by Open Air Fundraising, under which the company will continue to trade with 80 per cent of profits diverted to an insolvency practitioner to pay off creditors.

Charles Nall, finance and administration director at the Children's Society's, said: "The ?xA3;164,000 we are owed is an awful lot of money for any charity to lose, but we are satisfied that the agreement represents the charity's best chance of recovering the funds.

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