Insolvency
Insolvency! Are you fighting to stay afloat? Creditor & cash flow problems? Do you need clear and helpful advice? We can help Companies and Directors through an Insolvency situation...
Contact us for impartial Insolvency advice and assistance
With over 40 years of experience in the insolvency, business recovery and financial turnaround sector, we are experts in our field who provide unique and specialist advice to our clients throughout the UK.
How we can help...
- Business class Financials offer free, bespoke, confidential advice that will help you deal with your financial issues.
- We are a specialist firm, operating nationwide to provide pre-emptive, actionable financial solutions that are effective and work for you because they are tailored to your needs and designed to act in the best interest of your business.
- You’ll be able to take a step back and be relieved from the stress, allowing you to focus on running your business while we do the firefighting. Thanks to our swift advice & guidance throughout all types of insolvency procedures, we are able to add the often much needed commercial aspect of business recovery.
Who we are?
With over 40 years of experience in the business recovery and financial turnaround sector, we are experts in our field who provide unique and specialist advice to our clients throughout the UK. Our dedicated consultants act quickly in critical situations, having the requisite skills and vast knowledge of all insolvency procedures to ensure you receive the best outcome possible.
It is this experience and skill which enables us to provide the commercial aspect to any type of insolvency and turnaround procedure unlike many advisors.
If you are a director of a limited company then the responsibility lies with you to act and seek advice.
We can help...
Advantages & Disadvantages
For insolvent companies, there are many advantages to entering administration. It gives the company breathing space to plan for survival. It can also prevent one creditor taking action which could be to the detriment to other creditors or indeed threaten the very future existence of the company.
An administration will protect the company from creditors whilst the process is ongoing, giving the company respite from creditor pressure. Administration is also an opportunity for the company to potentially be restructured, at the same time removing inefficient or non-profitable parts of the business.
Whilst the positives are there to be seen, advertising that a company has entered into administration can be damaging to a business, it shows that the company is insolvent. Directors also lose control of the day to day workings of the business, with the administrators taking temporary charge.
The Administration Process
Our company administration process.
Appoint an administrator
Company directors will choose to an appoint an administrator on behalf of the company. Alternatively the holder of a floating charge can force through the appointment of an administrator over a company if it has failed to uphold the conditions of a debenture agreement.
Assess the company
After the appointment of administrators, they have an eight-week period to send out formal administrative proposals to all creditors.
Statement of affairs
The newly appointed administrator must request that one or more of the company’s current or former directors, must provide a detailed statement of company affairs. This document needs to detail all assets and liabilities of the company, including any contingent liabilities and assets which are subject to a fixed or floating charge.
Send out the proposal
An administrator must attach the statement of affairs to their proposal within the eight-week time period, which the administrator will send out to creditors. When the proposals have been sent out, a copy will be stored with the registrar of Companies House on the company’s public file.
Creditors’ decision
In the past, a physical meeting of creditors would have been held to consider the proposals, but since The Insolvency (England and Wales) Rules 2016, new decision making procedures such as deemed consent or an alternative decision making procedure will be used.
Administrative progress report
The administrator is required to send an administrative progress report at least once every six months to all creditors involved until the company administration procedure ceases.
The Alternative
Alternative solutions
Although administration is a powerful tool that can save a company, whether it’s the best option for your company will depend on its own circumstances. Fortunately, there are other solutions available to help you either recover your business or close the doors.
A formal payment plan; a CVA
If you want to continue trading while repaying your creditors, you can explore applying for a Company Voluntary Arrangement (CVA). CVAs are formal arrangements allowing you to make affordable monthly payments to your creditors, stopping them from taking further action against the company. CVAs usually last five years, after which time, all remaining debt is written off, allowing you to continue unburdened by your old liabilities.
Company closure
Sometimes it might not be viable to keep the company open; the volume of debt and creditor pressure could be too burdensome for recovery to be a reasonable option. In these circumstances, you may be better off closing the company via a Creditors Voluntry Liquidation (CVL) before your creditors apply to wind-up your company through compulsory liquidation.
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