At Walsh Taylor we believe that a formal insolvency procedure resulting in closure should be the last option for businesses in difficulty. Wherever possible we consider all alternative routes first with the aim of rescuing the business.
Through our management team, professional advisors and stakeholders we can offer:
- Restructuring advice
- Turnaround strategies
- Informal payment arrangements
- Debt management plans
- Corporate finance advice
- Guidance on the personal consequences of insolvency on directors
Administration allows a business to continue trading while offering protection from action brought by creditors.
The proceedings can be started by the company, its directors or a creditor. The holder of a qualifying floating charge can also make an application for an administration order at short notice.
A “pre-pack” procedure would see the sale of the business and assets immediately upon appointment of an administrator.
Creditors’ Voluntary Liquidation (CVL)
This is an insolvent liquidation procedure started by the company directors
It usually means an immediate halt of business and the sale of assets piecemeal.
Company Voluntary Agreement (CVA)
This is an agreement between the company and its creditors and shareholders.
For a CVA to be approved the proposals must receive 75% support (in value) of the creditors who choose to vote on it. Half of the shareholders must also be in agreement.
A CVA will allow the existing management to continue to run the business, and a Supervisor will oversee the implementation of the CVA.
Members Voluntary Liquidation
Although not an insolvency procedure, MVL does require the services of a Licensed Insolvency Practitioner.
It is used when the directors of a solvent business opt to cease trading and requires a majority of directors to swear a declaration that all creditors will be paid in full, along with statutory interest within a maximum of 12 months.
A Liquidator is appointed by shareholders to realise the company’s assets, and settle creditor claims before distributing any surplus assets to shareholders.
MVL can be a tax efficient way for owners to extract value from their companies.
Receivership is now usually replaced by administration, but it is still available to holders of floating charges
Receivers can also be appointed under the Law of Property Act to deal specifically with property.