Restructuring & Recovery

CLOSING SOLVENT COMPANIES

When shareholders or directors are looking to cease to trade or close down a solvent company, there are two options: Members Voluntary Liquidations (MVL’s) or Strike Off.

Strike off may be appropriate for companies that have less than £25K remaining in hand, little or no creditors, and minimal tax matters to be resolved. Strike off is a quick process, and if there are no objections, the company will be dissolved two months from the date of application.

MVL is the solvent winding up of a company in order to distribute the company’s assets to the shareholders. An MVL may be appropriate for companies with more than £25K cash to distribute or have physical assets to be distributed directly to the shareholders. It also offers tax efficiencies for the shareholders. The Liquidator will deal with all matters related to the MVL, including any creditors, and  the company will receive HMRC clearance giving the directors and shareholders peace of mind. There is no limit on distributions, and we are focused on distributing the assets to the shareholders as quickly as possible.

BUSINESS RESCUE & RECOVERY

If your company is facing financial distress, the earlier we get involved, the more options for rescue and recovery of your business will be available.  Depending on circumstances options may include:

• Refinancing
• Sale of the business and Accelerated Mergers & Acquisitions (AMA)
• Moratorium
• New Restructuring Plan
• Company Voluntary Arrangements (CVA’s)
• Pre-pack Administrations / Administrations

We will work with the directors, shareholders and all other stakeholders to come up with the best solution that maximises the outcome for all parties.

FORMAL INSOLVENCY

A company is insolvent when its liabilities are greater than its assets or it’s unable to pay its debts when they are due. If you’re a director and believe your business is (or is about to be) insolvent, your obligations change from the shareholders to your creditors.

Administration

Administration is  a formal insolvency process.  The first objective is to rescue the company as a going concern. The Administrator can trade the company on whilst marketing the business and assets for sale. If a going concern sale cannot be achieved, then the Administrator realises the company’s assets for the benefit of the creditors.

Liquidations

If there is no real possibility of a successful turnaround, then the usual result is the winding up of the company via liquidation.  There are two types of liquidation process, Court Liquidations and Creditors’ Voluntary Liquidations (CVL’s).  In both processes, the Liquidator’s main duties are to realise the assets, liaise with and assist creditors, assist employees, wind up the company’s tax affairs and undertake statutory investigations and all statutory work, adjudicate creditor claims and distribute funds.

Personal Insolvency

If you are facing personal debt and money worries, there are many options available to you.  Talk to us as soon you can; we understand the uncertainty is often the most worrying aspect, and our licensed Insolvency Practitioner and our dedicated team will explain clearly and sympathetically what’s involved.

OUR ADVISORY SERVICE

If you know your business is struggling or you’re a creditor or stakeholder worried you’ll lose your money, talk to us now. By getting to grips with the issues early on, we’re better placed to find a solution.

Companies

Our experience means we can advise on a wide range of possible solutions, such as restructuring the business, refinancing, recapitalising or accelerated M&A. It may be that simpler options – reviewing your systems and improving cashflow, instigating cost-savings to increase profitability or just communicating more closely with customers and creditors – will get you on a secure footing once again.

Directors

We can advise you on your duties as a director of an insolvent company or distressed business to ensure you are acting in the best interests of the creditors and to avoid any potential personal liability or action against you.

Creditors and stakeholders

We assist creditors with debt recovery and advise on an appropriate strategy and action in order to achieve the best recoveries possible.

For lenders and floating charge holders, we can undertake Independent Business Reviews which will give a clear view of whether a company is already insolvent, close to insolvency or if it’s still viable and negotiations would be worthwhile and evaluate all available options.