Professional advice should be obtained for specific situations. If there is a prospect of formal insolvency you should not act in a way that materially worsens the position of creditors.
We can review the business and financial structure of the company and assist with a rescue process.
Many businesses that fail could have been saved if specialist advice had been sought in time. A typical rescue will include understanding the immediate financial position, managing urgent issues, talking to key stakeholders, including accountants, solicitors and investors, understanding the business, assessing viability, preparing a recovery plan and implementing it.
We can review the HMRC tax liability position and work with you to propose and set up a credible extended payment arrangement, that has a good chance of agreement.
A "CVA" is a structured procedure for viable but debt ridden companies where directors stay in control. A Proposal is made to creditors for the delayed/reduced payment of debt. If accepted by 75% of creditors who vote it binds all creditors.
An Administrator takes charge with powers to remove directors, manage the business, cease trading and sell the business and assets. Proposals are made that may include a rescue or a wind down. An Administration "Phoenix" or "Pre-pack" involves the directors or a third party buying a business shortly after insolvency to continue the business.
For insolvent companies requiring closure the procedure is a CVL, initiated by directors. A liquidator realises assets and distributes funds as well as a range of statutory matters to wind up the affairs of the company.
An "LPA Receiver" is appointed over a specific property asset with powers to manage and sell the property.
We also act as Trustee in Bankruptcy of individuals and sole traders. Partnership insolvency can be complicated and we can advice on how the process works.
An MVL is a solvent liquidation. Creditors are paid in full although only an insolvency practitioner can act in an MVL.
When a company has come to the end of its useful life an MVL up is often required because:
If the company is not wound up then the directors continue to have to comply with their duties as directors, including accounts, Companies House etc.
Business Asset Disposal (Entrepreneurs) Relief
There can be tax savings for shareholders from closing a company using an MVL, if this Relief applies.
Your personal tax advisor should be able to advise you if an MVL would be tax efficient. If so we will work alongside your tax advisor and act in the required liquidation process.
Section 110 Insolvency Act Scheme
One or more businesses of a company in MVL may be transferred to a new company, or companies, in return for shares in the new companies. New shares are distributed to the original company shareholders.