Administration

An administration is a formal procedure placing a company or partnership that is, or may become, insolvent under the control of a licensed insolvency practitioner.  When a business is put in administration, no legal action can be taken against it (including from creditors such as HM Customs, banks and suppliers). This will give time to reevaluate and consider a plan of action such as selling the business, negotiating a payment plan with creditors or selling the assets and winding up the business.

Company Voluntary Arrangement

A Company Voluntary Arrangement or “CVA” is a procedure that allows an insolvent company to reach an agreement with its creditors to delay or compromise the payment of its debts.  This can be a good solution where Directors consider a business to be overburdened with debt although inherently still viable. Under a CVA the creditors are unlikely to recover all they are owed and the agreed debt amount would be paid back over a period of time. As long as the creditors agree, typically the business will be able to continue trading as before.

Creditors Voluntary Liquidation

Liquidation is the formal winding up of a business entailing the realisation of its assets and the distribution of the resulting proceeds in a prescribed order of priority and is followed by the permanent dissolution of the company.  A Creditors Voluntary Liquidation is the most common way for directors and shareholders to deal voluntarily with their company’s insolvency.

Members Voluntary Liquidation

This is a procedure where a solvent company formally ends its trading life, leaving no loose ends and usually providing a tax efficient exit route for shareholders.

Compulsory Liquidation

A Compulsory Liquidation is initiated by a creditor who petitions the Court to formally wind up a company. The primary duty of the liquidator is to maximise realisations and minimise losses for creditors.

Turnaround

If your business is under performing and demands on your cash flow are becoming excessive, we can give you specialist advice on ways to revitalise your business such as new funding, investment or restructuring.  These and other options form part of the turnaround routes we would consider with a view to restoring your business to a healthy financial position.