Company Debt Help & Advice

If you’re suffering from business or company debt, there are solutions to help alleviate the issue and get you or the company back on track. Recovery may involve negotiating with creditors or restructuring the company through administration. If the debt has reached a level that the company needs to close, there are options for a smooth shutting down rather than being forced into compulsory liquidation.

Do you want to continue with the company?

If your business is insolvent, but the core of the business is viable, it may be possible to save the company and allow the business to continue operating. In these cases, the following arrangements would be suitable.

Company Voluntary Arrangements (CVA)

Company Voluntary Arrangements (CVA) could be a viable rescue device for directors who feel that a company has a future and are prepared to work hard to save it. A CVA involves a company making contribution payments to an IP over a set period, based on what the company can afford. The IP then distributes this money to creditors on a pro-rata basis. After payment of the final distribution; the company is discharged from the CVA. The company can then carry on trading unencumbered from its previous liabilities.

A CVA is an effective way to continue trading while the debt is repaid in a manageable way.

Administration

If your company debt has gotten out of control and your business could collapse under creditor pressure, administration is a powerful tool that can help get the situation under control. Administration will stop all pending creditor action and prevent them from taking further steps to reclaim their monies. It will also allow us to thoroughly analyse your company’s financial situation and propose the ideal rescue or recovery solution.

Re-Financing and Re-Structuring

In some instances, it may be appropriate to reduce company debt through the introduction of capital or investment. There are a variety of ways in which we may seek to do this, and the options available depend on the individual circumstances surrounding a company. However, options such as asset-based lending, invoice financing, sourcing investment, financial restructuring and consolidation through loans will all be considered.

We offer a fast and efficient service with nationwide coverage from a network of regional offices, meaning a free consultation can be arranged at a time and location that suits you.

If you’re the director of a company burdened with debt, get in touch today to arrange a free, confidential consultation with no obligation.

Do you want to close the company?

In some cases, the company’s debt can be so extensive that it isn’t possible for the business to continue trading, or you simply don’t want to carry on and want to put the company to bed.

If your company debt has reached levels where the chances of recovery are slim, a Creditors Voluntary Liquidation (CVL) could be the ideal way to prevent further losses to creditors. It can also help reduce the possibility of Wrongful Trading action against directors. A CVL will mean the end of a company and its debt, but not necessarily the demise of a business.

Do you want to restart the company?

In some instances, the core business may be viable but would be better operating in a new company, separate from the old company and free from its liabilities to its creditors.

Pre-Pack Liquidation involves selling off an insolvent company’s assets and business to a new limited company (newco) and allowing the business to continue trading free from the debts of the old company (oldco). Staff, works in progress, and other aspects of the company could be carried over, though this will depend on the individual circumstances. Pre-Pack Liquidation is normally only allowed if it’s deemed in the creditors’ best interests.

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