Your business is in financial difficulty

Trading difficulties are not unusual. Usually, businesses can trade through difficult periods. Sometimes though, they cannot.

In those circumstances, our leading Insolvency and Restructuring team can advise you on the various informal and also formal procedures that are available to either buy you more time and to help you to save all or part of your business, or to help you to wind down your business in an orderly fashion. Where necessary we work with Insolvency Practitioners to help you to achieve the goals we have set with you.

So what are the options open to a business that is in severe trading difficulties? They include -

Administration
 
This is a procedure  (which can be instigated by, amongst others, the directors of the company) whereby an Administrator is appointed to conduct the affairs of the company and takes over the management of the company.  The company can be reorganised or its assets realised whilst it is under the protection of a moratorium which prohibits creditors from instigating or continuing with a legal process against the company without the consent of the Administrator or permission of the Court.  The idea behind Administration is that it can act as an alternative to winding-up so that where possible the company or at least its business can be rescued.

Liquidation

Also known as winding up. Liquidation is an insolvency procedure under which the assets of a company are realised and distributed to creditors by a liquidator. Liquidation can be compulsory (instigated by a creditor) or "voluntary” (instigated by the company itself). Unlike other insolvency procedures (such as administration), liquidation always results in the dissolution of the company.

Company Voluntary Arrangement

Also known as a CVA. This procedure involves the company and its creditors reaching an agreement regarding the payment of the company's outstanding debts. The agreement is implemented and supervised by an insolvency practitioner. 

As well as helping businesses that are in difficulty, we regularly advise directors and other business owners on the personal consequences of insolvency in their business (for more detail on these see the section entitled "Directors' responsibilities and personal guarantees”).

The team draws on the expertise of other specialist teams within the firm when the need arises, particularly the corporate, employment, litigation, debt recovery and commercial property teams.

As we say, we are always there for businesses who are in our BLUE LAW scheme, so we invite you to join BLUE LAW now. Once you have joined, we try to answer any legal enquiries that you have, free of charge. If legal work is needed, we give you a price, and you are then free to "shop around".  If you wish to speak to us now, please click on "Please Contact Me Now” or call us on 0800 084 3256. We look forward to always being there for you.