Corporate

Economic downturn, rapid market changes, new competitors, failure of customers to pay overdue accounts, the loss of a major contract or strategic errors - any or all of these can plunge a company into serious financial distress.

When a business finds itself experiencing increasing cash flow problems, the pressures of chasing the next sale, collecting money owed, paying impatient suppliers and meeting payroll commitments can cause much distress. Quite often the owner of the business or the board of directors feel they have no options available to them.

As experienced Licensed Insolvency Practitioners, we assist both company directors and sole traders when difficult trading conditions are being experienced. All businesses regardless of their size are likely to experience periods of difficult trading at some point. Whether they can weather the storm depends on a variety of factors.

We are qualified to properly assess your particular situation and advise on the best course of action, for your business whether that is an informal plan to improve your cashflow and profitability or a formal insolvency procedure such as a Company or Individual Voluntary Arrangement. Administration or Voluntary Liquidation.

The formal corporate insolvency services we offer are shown below

Company Voluntary Arrangement ("CVA")

This is a procedure whereby a plan of reorganisation or composition, in satisfaction of a company's debts, is put forward to creditors and shareholders. There is limited involvement by the court and the scheme is under the control of a supervisor (A licensed Insolvency Practitioner). The Supervisor does not run the company, which remains under the director's control.

For a CVA to be put in place, 75 per cent of creditors (by value) of those creditors who vote will need to vote in favour of the proposal Companies will also be expected to make structural changes, involving major cost-cutting drives such as salary reductions and redundancies.

Administration

Administration is a procedure available to a company that is insolvent, or is likely to become so, which places the company under the control of an insolvency practitioner and under the protection of the court.

The process of appointing Administrators has been much simplified since the introduction of the Enterprise Act 2002, giving the directors and shareholders the option to appoint Administrators by a process of filing a Notice of Intention to Appoint.

While a company is in administration creditors are prevented from taking any actions against it except with the permission of the court.

Voluntary Liquidation

In law, liquidation refers to the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed. A company does not have to be insolvent to be placed into liquidation - it can simply be that there is no further use for the company.

As liquidation is normally 'a last resort' for an insolvent company. The Insolvency Practitioner will need to discuss all other options available to you before this avenue is chosen.

Liquidation is automatically followed by dissolution.