Not sure what to do if your company is insolvent? Depending on the company's circumstances and the future you want for it, you could have several options.

Your company’s options could include:

  • Repaying the debt in affordable instalments.
  • Additional commercial financing.
  • Restructuring the company.
  • Closing the company, drawing a line under the debts.

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    My company is insolvent. What can I do?

    If your company is insolvent, or you believe has financial difficulties and is facing the prospect of insolvency. You can consider the formal insolvency options below:

    • Company Voluntary Arrangement (CVA).
    • Administration.
    • Creditors Voluntary Liquidation (CVL).

    How to tell if your company is insolvent

    If you’re unsure if your company is insolvent, there are ways to identify its solvent position, allowing you to take the action best for its situation.

    • Check the company’s cash flow, and make sure it has enough funds to cover its bills as and when they fall due.
    • Ensure the company’s liabilities don’t exceed the value of its assets on its balance sheet.
    • Check for legal action from creditors, including County Court Judgments (CCJs).

    More on how to determine if your company is solvent or insolvent

    Company recovery options

    If you find your company is insolvent, you should consider whether the business is viable and whether it has good prospects. If you think you can overcome the adversities currently holding your business back and wish to keep the company trading, there are options to consider.

    • Time to Pay and informal arrangements
      If your company is in short-term financial difficulties with HMRC, you may be able to reach an agreement if you approach them with an acceptable repayment scheme. A Time to Pay Arrangement is a type of informal agreement with HMRC, usually lasting six or twelve months, with the entire debt being repaid by the time of its conclusion.
      More on Time to Pay Arrangements with HMRC
    • Raising finance
      If your company’s core business is sound in structure but needs to raise or restructure its borrowings or other financial standings, your options could include:
      • Restructure existing finance.
      • B2B businesses – invoice finance (this may be helpful if the issues were caused by rapid growth).
      • Refinance plant, equipment, vehicles, etc.
      • Commercial mortgage / re-mortgaging.
    There are numerous options when it comes to business finance, but the underlying problems within the business must be addressed. Depending on your company’s financial position, a formal insolvency procedure may be more appropriate.

    More commercial finance options

    • Repay company debts through a Company Voluntary Arrangement (CVA)
      A CVA is a formal repayment arrangement allowing you to consolidate your company’s unsecured debts and repay them monthly over five years. Any unsecured debts left at the end of the CVA are written off, and the company can continue to trade throughout the arrangement. You retain control of the company’s day-to-day operations. A financially troubled company can get back on its feet while paying back something to unsecured creditors, avoiding winding-up petitions.
      We can assess your company’s financial situation and offer guidance on whether a CVA would be appropriate, completely free of charge.
      More information about Company Voluntary Arrangements
    • Restructure the company through administration
      If the company’s core business model is sound, but historical debts are burdening the company, it could benefit more from restructuring.
      Administration offers directors protection from creditor pressure while the insolvency practitioner restructures the company to attempt to rescue it as a going concern and return it to a profitable state, making it more appealing to potential buyers.
      Speak with one of our experienced advisors who can advise if administration is suitable for your business model.
      More information on administration

    Company closure options

    If the company is insolvent and it looks unlikely it will recover from its financial problems, contact us for advice on ceasing to trade. Doing so allows you to formally close the company in an orderly manner, avoids worsening your creditors position, putting a stop to all further legal action and ensuring your responsibilities as director are met.

    • Close the company via a Creditors Voluntary Liquidation (CVL)
      Sometimes, the company’s debt can be of such a level that company isn’t viable going forward, and the directors would be better off closing and walking away. In this case, the insolvency practitioner may suggest that the company enters Creditors Voluntary Liquidation (CVL). This closes the insolvent company and writes off its unsecured debts.
      More details about Creditors Voluntary Liquidation
    • Close the company down and start again via a Pre-pack liquidation
      In some cases, it may be possible to purchase assets from the liquidator and continue running the business in the name of a new limited company. This can be done through a pre-pack liquidation, a form of CVL, wherein a newly formed company purchases the old, insolvent company’s assets, and it is then liquidated.
      More on pre-pack liquidation

    How we can help

    If you’re unsure which option would be best for your company, we can help you decide. Our advisors are friendly, understanding, and available to offer you free, non-obligatory initial advice, guidance, clarity, and direction.

    1. Speak with our initial advisers via phone or online chat. If we can help, we will arrange a free consultation with a consultant to further discuss your situation.
    2. During the consultation, we will advise which option would be best for your company.
    3. After your consultation, if there is an appropriate route forward, we will issue the relevant documentation to start a formal engagement.

    We can provide the necessary expertise to advise you on which process would be best for your company.

    In summary

    You have several options if you find your company is insolvent. Which option you should take depends on your own assessment of the company. If continuing to trade is an option, it could enter a Company Voluntary Arrangement (CVA). If more substantial restructuring is required, then administration might be more appropriate. If the debts are of such a level that the company would be better off closing, then a Creditors Voluntary Liquidation (CVL) can put the company to bed.

    Case Studies

    Authored by Kelly Burton

    Silcox Coach Company

    Kelly Burton • Automotive • Company Voluntary Arrangement (CVA)

    Pembrokeshire-based Silcox Coach Company, which operates school transport as well as local bus services, has been placed into administration today.

    Despite attempts by administrators from Sheffield-based Wilson Field to secure a buyer with various interested parties, the 134-year-old company, which operated a fleet of 65 coaches and buses from its base in Pembroke Dock, has now ceased trading.

    Insolvency practitioners Kelly Burton and Joanne Wright from Wilson Field Limited were appointed by shareholders after the company experienced financial difficulties and as a result all 92 staff jobs have been made redundant.

    However, in the region of 50 staff have been re-employed by Edwards Coaches of Pontypridd who have been granted the local authority contracts previously operated by Silcox.

    Kelly Burton, director and insolvency practitioner at Wilson Field said:

    “Silcox Coaches was a fourth generation bus and coach operator and over the years provided various forms of transport services latterly focussing local authority community bus routes, school services, coach hire and coaching holidays.

    “The company had an excellent reputation within the industry, the local community and its clients. Initially there were a number of parties interested in buying the business and assets and we had hoped to save all the jobs of the loyal workforce. Sadly, despite our best efforts none of these came to fruition. On the positive side, Edwards Coaches of Pontypridd have re-employed approximately 50 of those staff.”

    As well as office accommodation in Pembroke Dock, Silcox also occupied a small travel office in Tenby and  a large bus and coach compound near the offices in Pembroke Dock.

    Edwards Coaches is the largest family owned coach company in Wales employing over 500 staff and operating 260 vehicles. It currently operates National Express coaches from Haverfordwest departing daily to Cardiff, Heathrow, Gatwick London and various other destinations plus transportation for over 8000 students to school or college each day from bus depots all over South Wales.

    It also operates coach holidays for 80,000 passengers a year across the UK and Europe and operates The Edwards’ Red Dragon coach which is the official carrier of the Wales Rugby Team.

    Travellers who have booked and pre-paid for a holiday with Silcox may be entitled to a refund and should contact either Bonded Coach Holidays (BCH) e-mail: bch@cpt-uk.org or The Confederation of Passenger Holidays UK (CPT) Tel: 020 7240 3131.

    Authored by Kelly Burton

    ET Rowlands & Sons

    Kelly Burton • Automotive • Administration

    Assets from the well-known Telford road haulage contractor ET Rowlands & Sons, which has closed after nearly 60 years in business, are to be sold by auction online.

    The firm, known for its striking red livery on its vehicles, provided road transport solutions for UK and continental Europe and operated a modern mixed fleet of rigid vehicles, tractor units and trailers.

    Last week’s closure of the company, set up in 1958 by 87-year-old current director Mary Rowland’s father,  saw all 28 jobs made redundant after the company lost a major contract and potential hopes for a pre-pack sale were dashed.

    Kelly Burton - Director & Licensed Insolvency Practitioner

    Kelly Burton and Lisa Hogg from Yorkshire-based insolvency specialists Wilson Field were appointed joint administrators of ET Rowlands and Sons on 13 June at a meeting of members and creditors.

    Wilson Field, have instructed valuers and asset management consultants Charterfields to dispose of the assets of the company, which operated a warehouse facility in Telford.

    Vehicles and other items up for sale includes a fleet of 14 tractor units, seven rigid and flat HGVs by Scania, DAF and MAN, 14 curtainside and three flat back trailers, personalised numberplates including P7 ETR, P12 ETR, R4 ETR, S7 ETR, T2 ETR, V2 ETR, and 6 ETR, plant and office furniture. Other vehicles include a Vauxhall Movano 3.5T Dropside and Ford Transit T350 Panel Van.

    Kelly Burton, director and insolvency practitioner at Wilson Field, said: “ET Rowlands & Sons was a well-established family run business that experienced loss of a major contract.

    “The director came to Wilson Field for advice but regrettably the company entered administration and has been closed. As a consequence all 28 jobs have been lost. It is always sad to see a long-standing company go out of business with the loss of jobs.”

    The online auction is now open and closes Tuesday July 4 from 12 noon. For further details visit www.charterfields.com

    Authored by Kelly Burton

    Print On Solutions Limited

    Kelly Burton • Service Agency • Administration

    A Leeds print company has been bought out of administration saving all 54 jobs.

    Print On Solutions Limited was set up in 1999 years ago and went from start-up business to the largest envelope overprinter in the UK with offices in Leeds and Bury, 12 litho presses and six digital presses.

    Administrators Kelly Burton and Joanne Wright from Sheffield business turnaround experts Wilson Field were appointed joint administrators on 11 April after the company, based in Century House, Holbeck, ran into financial difficulties following an ongoing dispute relating to a significant contract.

    The directors took early advice and the business was sold to new company WEPOS Limited as a going concern saving all 54 employees’ jobs.

    Kelly Burton from Wilson Field said:

    “Following discussions with the directors, the business was sold to WEPOS Limited as a going concern, safeguarding all 54 employees’ jobs. The new company will offer the same service and standards and will operate under the same management team.”

    In 2003 Print On expanded by moving to a 12,000 sq ft, purpose-built factory in Leeds, designed to offer the business a state-of-the-art platform for growth.

    The expansion of the group was through strategic acquisitions and mergers of envelope manufacturers. Tower Envelopes in Bury merged with Print On in 2010 and became the Lancashire division.

    Stephan Hall Beverly Horton Charlotte Davison

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      Usman Khan

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      mark dangerfield

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      "Brilliant, straight to the point, answered my questions promptly A+"

      EdM-56

      star_rate star_rate star_rate star_rate star_rate

      "Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you. 100% recommend Christopher and Wilson Field"

      Martin Fellerman

      star_rate star_rate star_rate star_rate star_rate

      "Very good advice and simply put without the Jargon."

      Iain W

      star_rate star_rate star_rate star_rate star_rate

      "Spoke with Chris who was able to offer me some excellent, practical advice. Extremely friendly and professional to deal with - I can't recommend them highly enough!"

      Usman Khan

      star_rate star_rate star_rate star_rate star_rate

      "Very professional company, spoke to Chris at Wilson Field, who gave clear and honest advise regarding my business matter."

      mark dangerfield

      star_rate star_rate star_rate star_rate star_rate

      "Brilliant, straight to the point, answered my questions promptly A+"

      EdM-56

      star_rate star_rate star_rate star_rate star_rate

      "Christopher Callaghan at Wilson Field help me and my business. he alimented an extremely stressful situations and explained to me every step of the way in a way that i understood. thank you. 100% recommend Christopher and Wilson Field"

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