A detailed review of your business would be needed to ensure that you are advised of the right option for your situation and business. There are a number of potential options one of which is a payment agreement with your creditors. This can be arranged either informally or formally. An informal arrangement is made between yourself and your creditors. This can be done with assistance by the team at Walsh Taylor. Typically these are used when there is a good relationship between creditors and the business, the amount owed is small or the cashflow problem issue is seen as being short term.
The formal route is called a Company Voluntary Arrangement (CVA) which is managed by an insolvency practitioner such as Kate Ellis and Emma Mifsud at Walsh Taylor. After a detailed review of the company’s financial situation a proposed a payment schedule is put forward to the creditors detailing the amount that is to be paid (this is often a percentage of the total owed) and agreed time period. Each creditor votes on whether they wish to accept the offer, in order for the CVA to go ahead it must be approved by 75% by value of the creditors that chose to vote.
Other potential routes include a Creditors Voluntary Liquidation (CVL) where the company ceases to trade and its assets are used to pay off any creditors. However, it is important to discuss your individual situation with Walsh Taylor and the potential alternative routes available.