ClearDebt has acquired from Relax Group plc’s administrator, Jonathan Elman Avery-Gee, part of the businesses and assets of four subsidiaries of Relax Group plc (in administration). This consists of approximately 6,500 Individual Voluntary Arrangements (IVAs), Protected Trust Deeds and Debt Management Plans.
£2.7 million is being paid in cash from the Company’s own resources and existing facilities. ClearDebt’s directors believe that the book value of the assets acquired were recorded in Relax’s last published accounts at a value of about £6.256 million and as such the total consideration is equivalent to approximately 40% of that value.
ClearDebt sees this acquisition as the opportunity to expand its operations in the growing IVA and debt management sector and although the Company anticipates the collection of debts/fees from the IVAs, PTDs and DMPs, it does not intend to attribute such a high book value to those assets in its accounts.
ClearDebt’s CEO, David Mond, said: “The acquisition of these assets should provide strong
