The firm has a team of 7 staff, including four qualified, of which two are licensed Insolvency Practitioners. Our many years’ experience enables us to offer a professional service in resolving financial problems.
Administration provides immediate protection against creditors and is designed to allow a company sufficient time to consider all of its options. The underlying aim is to seek to allow the business to be rescued as a going concern, thus preserving jobs and allowing the maximum possible return to creditors generally. Trading can continue in Administration.
This streamlined process can be instigated by directors or secured lenders where a company has a viable future and used to try and rescue the Company, or achieve a better result for creditors than would be achieved in a Liquidation scenario.
There are essentially three types of liquidation: Creditors’ Voluntary Liquidation (CVL), Members’ Voluntary Liquidation (MVL) and Compulsory Liquidation.
Where the directors believe that their Company is insolvent as it cannot pay its debts in full, they may consider placing the Company into CVL by the shareholders passing an appropriate resolution. Although, there may no longer be a creditors meeting, there is an opportunity for the creditors to receive and request information on the demise of the Company and its affairs. A Liquidator will take responsibility for realising all assets and distributing a dividend to creditors, if appropriate.
The shareholders resolve the wind up the Company and appoint a Liquidator to deal with all assets, pay all creditors in full and distribute a return to shareholders.
COMPANY VOLUNTARY ARRANGEMENT
In certain circumstances, it may be appropriate for a company in financial difficulties to make a structured repayment proposal to its creditors. In order to formally achieve this, 75% (in value) or more of the creditors will need to agree to the plan and the appointment of a licensed Insolvency Practitioner as Supervisor is required to monitor and control such a proposal. All creditors will then be bound by the terms of the proposal.
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