The Administration process is the most high-profile of all corporate insolvency procedures. It is often used as a rescue procedure, and it is often used to maximise realisations for the benefit of creditors when an insolvency process is required as well as saving jobs.
An Administration can be used as a vehicle to facilitate a going concern sale, whether that is through an accelerated process (“pre-pack” Administration) or following a period of trading the business in Administration. It can also be used as a controlled wind down of a business, where a purchaser is not appropriate or cannot be sought.
Our team has the expertise to be able to work with the relevant stakeholders to ascertain the most appropriate strategy before implementing it following the appointment.
Where a business has encountered trading difficulties and cash flow problems, sometimes a CVA is the more appropriate option for directors. It is a formal insolvency process but management remain in control and the appointed Insolvency Practitioner merely supervises the conduct of the CVA.
A CVA provides a company with an ability to compromise its debts with its creditors without affecting its secured creditors. It is often used as a vehicle to finalise a restructure of a business that has been underperforming and cannot overcome its financial difficulties without external assistance. If successful, the CVA allows the company to turnaround its business.
Our team work alongside management and stakeholders to prepare projections, proposals and the implementation of the plan, and continue to be available to management once the proposals are approved so that the turnaround can be effectively completed.
When a business is in significant financial distress, it can be difficult to rescue the business. In these circumstances, the directors may find that a more appropriate route is to place the company into Creditors’ Voluntary Liquidation (“CVL”). Where there are assets in the business, placing it into a CVL can facilitate a return to creditors.
If the business is insolvent and there is no opportunity to rescue the business, our team will work with management to place the company into CVL. Where the company still has employees, our team will guide the directors and employees through the redundancy process and ensure that the employees can claim what is owed to them as quickly as possible, thus minimising the stress of what can be a very difficult situation.
Where there are allegations of misconduct on behalf of the directors or former directors, our team are also experienced in contentious matters. We act on behalf of stakeholders to investigate any potential wrongdoing which may give rise to additional asset realisations for the benefit of creditors as a whole.
A compulsory liquidation is an immediate shutdown which is started when a creditor presents a petition and the petition debt remains outstanding.
Being presented with a petition does not necessarily mean the end for your business. We can work with management to ascertain whether there are alternative routes which might be more appropriate.
We also act on behalf of creditors who have presented petitions and we take appointments as Liquidators where there are assets available for the benefit of creditors. We are experienced in contentious matters and have been able to secure realisations from directors of businesses where concerns were raised about their conduct.
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