Business recovery solutions
Facing up to the fact that your business is in serious financial peril is one of the most harrowing admissions that any businessperson can make, and speed is of the essence.
Headed by Richard Gardiner, our corporate team has extensive experience in this highly specialised area. We can work with you, quickly, and help you make the right decision when considering the best course of action as to how to salvage your company or take the correct steps to help you avoid the pitfalls of corporate insolvency.
In the event that recovery in full or in part is not possible, it is important that the correct method of winding down is utilised with a view to maximising the return to creditors and in some cases the members.
The formal methods available include:
• Administration – an Administrator is appointed to deal with the company’s affairs and, on appointment, takes control of the company / its business. The Administrator’s role is wide ranging and will vary on a case-by-case basis, however, typically involves actions such as renegotiating contracts, dealing with redundancies and liaising with creditors. The appointment of the Administrator can be made for a number of reasons, including providing a platform to negotiate a Company Voluntary Arrangement (“CVA”), selling the business as a ‘going concern’ or selling the company’s assets to provide a return to its creditors.
• Receivership – a Receiver is appointed on the application of a qualifying creditor with a view to recovering monies owed to it in relation to account(s) which are in default. There are certain criteria which must be met in order to appoint a Receiver and it is a tool which would only be used in very specific circumstances.
• Liquidation, including:
o Creditors’ Voluntary Liquidation (“CVL”) – a company cannot pay its debts as they fall due (it is insolvent). The Directors themselves, together with the company’s shareholders, resolve to wind the company up and the creditors’ agreement is also sought thereafter.
o Compulsory Liquidation (Court Liquidation) – a company cannot pay its debts as they fall due (it is insolvent) and typically a creditor applies to the Court to appoint a Liquidator. It is also possible for the company’s Directors to use this route into Liquidation.
o Members’ Voluntary Liquidation (“MVL”) – a company can pay its debts (it is solvent), but the Director(s) want to extract the value held in the company and bring it to a structured close.
• A Company Voluntary Arrangement (“CVA”) – this is a proposal made by a company to its unsecured creditors (such as lenders, suppliers, utility providers and HMRC) to make contributions from future profits and/or from the sale of assets, with a view to paying creditors in full, or in part, from the proceeds.
Richard Gardiner, Partner, is authorised by the relevant regulatory bodies and you can have confidence that our judgement is based on experience gained over years of challenging turnaround and crisis management situations.
“Really appreciate your help and support over the past 2 years. I will definitely recommend you and your company.”