Insolvency & Business Rescue
Our panel of qualified Insolvency Practitioners can provide you with FREE impartial advice in relation to any insolvency matters or financial challenges your business may be facing.
Below is a brief overview of how an Insolvency Practitioner can assist.
Administration/ Pre-pack Administration
The main benefit of appointing an Administrator is to obtain immediate legal protection from your creditors whilst the Administrator puts a rescue or restructuring plan in place.This will allow him to keep the company trading whilst he is appointed.
If he cannot put a sufficient restructuring plan in place that is to the benefit of all parties involved he can then sell off the assets of the company to achieve better realisation for the benefit of creditors.
This can be achieved through a management buy out scheme, this may be attractive to Directors or management team who want to retain certain assets of the company for their own ventures.
This is normally referred to as a Pre-pack Administration where Directors or management team foresee a company that is failing, but feel that under a different infrastructure can make their business profitable again.
CVA – Company Voluntary Arrangement
CVA’s are designed to allow a business to trade its way through the financial challenges it may be facing.
With the support of creditors it will allow them to enter into a legal and binding agreement that will:
- Freeze interest and charges
- Hold off further legal action
- Relieve Directors from creditor pressures
- Allow the company to pay what it can afford to pay during the period of the arrangement and the balance be written off
A CVA is normally based on a five year repayment term or brought to an early conclusion by way of an offer of a full & final settlement.
CVL – Creditors Voluntary Liquidation
This is instructed by Directors and shareholders of an Insolvent Company and designed to make the Liquidation process as pleasant as it possibly can.
By instructing your own Liquidator it will improve your chances of avoiding implications such as Director Disqualifications or personal liability.
Your Insolvency Practitioner will guide you through every step and support you through these difficult times.
It makes a difference knowing you have someone fighting your corner and looking after your best interests by providing professional advice and making sure you are not crossing any boundaries that could bring further implications.
MVL – Members Voluntary Liquidation
This is where a solvent company is entered into Voluntary Liquidation because the Directors or Shareholders feel it is time to bring the company to a closure i.e: because they want to retire.
However this can only be achieved if the company has sufficient funds to pay its creditors in full within a 12 month period.