Red Cover Picture Library located in the United Kingdom has entered into a Company Voluntary Arrangement (CVA) to restructure its debt.
A CVA is a deal between an insolvent company and its creditors that places a ring fence around the company, stops creditors attacking it and allows the company to repay some or all of its historic debts from future profits over a period of time. Directors remain in control, and it stops any legal actions.
To this end, Red Cover has held a formal meeting administered by Fisher Partners, Chartered Accountants, where a representative group of contributors and creditors agreed to a plan to take the company forward under a CVA.
"We put forward a number of proposals and all were accepted," comment two contributors, Andrew Twort and Johnny Bouchier. "We and many others, have been with the company for a number of years and feel we can work together to get Red Cover back on-track and ensure they take their place as a major player in the rights-managed picture library industry."
"With the blessing of the contributors, we plan to create a much more transparent business working closely with all of our writers and photographers and the existing internal team to build a better business for all" said Mark Bezodis, managing director.
The London-based specialty stock library, founded in 2000, is known for its rights-managed archives of interiors, gardens, lifestyle and food and recently launched a royalty-free collection.
The company now plans to work closely with the SAA (Stock Artists Alliance) and BAPLA (British Association of Picture Library and Agencies) to meet these new objectives.