Company recovery help & advice
There are both formal and informal procedures to help directors rescue their business and recover their company from a position of financial distress. Options may include sourcing new funding, restructuring the company’s operations, and entering a formal insolvency procedure. The most appropriate route forward for a company, will be dependent its on the debt levels and what the company’s directors are looking to achieve.
How we work
Our objective is to achieve the outcome you desire as a director. To do this, we need to speak with you and analyse your company’s current position. Once you have made contact with us, our initial advisors will establish if there is a way in which we can assist you – we will arrange a free consultation to assess your situation in-depth and provide actionable advice, tailored to your company’s situation, talking you through the most appropriate company recovery options.
Insolvent company recovery options
Company recovery options can range from informal solutions such as sourcing funding, restructuring your business or putting in place a time to pay arrangement, to formal arrangements which require the involvement of a licensed insolvency practitioner. These options are legally binding and can be powerful solutions when required. Here are some of the options that can be considered.
- Company administration
Administration provides a company with protection from its creditors whilst an insolvency practitioner (IP) takes control of the business and the directors’ powers cease. During this period, creditors are not allowed to take further legal action, and the administrator must achieve one of three outcomes:- Rescuing the company as a going concern, or
- Achieving a better result for the company than if it was liquidated, or
- Realising company property for the benefit of secured or preferential creditors
Find out more about company administration
- Administrative receivership
Administrative receivership is a rare procedure, instigated by creditors who hold floating charges against their debtors when terms of borrowing have been breached. An insolvency practitioner (IP) such as us are appointed to take control of the business and come to an arrangement to recover the debts owed. This is generally done through the sale of assets as a piecemeal process before handing the company back to directors, or through the sale of the whole business as a going concern.
Find out more about administrative receivership - Enter into a Company Voluntary Arrangement (CVA)
A Company Voluntary Arrangement is a structured repayment plan which includes a company’s unsecured debt. A CVA is a common procedure that companies use, allowing them to renegotiate existing debt but continue to trade through. Once in place, all interest and charges are stopped, and creditors cannot take further legal action against you with regards to any debts included in the arrangement. The arrangement will usually last a period of 5 years, and upon completion, any outstanding unsecured debt is written-off.
Find out more about CVAs - Time To Pay Arrangement
Time to pay arrangements are an informal solution but can be ideal for companies who have a good track record with HMRC but have recently run into trouble with regards to payments owed to them. TTP arrangements allow companies to pay outstanding corporation tax, PAYE/NI or VAT liabilities in instalments over the course of either 6 or 12 months. However, HMRC must be confident that your company can make the full repayments before accepting a proposal.
Find out more about TTPs
What if company rescue is not an option?
If rescuing the company is not a viable option, directors must consider alternatives to minimise creditor losses and fulfil their legal obligations as director. Circumstances sometimes dictate that company recovery can’t be achieved and the company needs to be formally closed and wound-up. This will involve a company entering into a formal liquidation.
It’s essential for the director of a company in financial distress to seek insolvency advice, as it gives them the best chance of complying with insolvency regulations and their legal responsibilities as a director.
How we can help
The first step is to make contact with us. Once in touch we can talk through your current situation and go through how we can help you. All of our initial advice is free of charge, and our licensed insolvency practitioners are licensed by the ICAEW. The advice you receive is regulated in the interest of what is best for your company.
- Speak with our initial advisers via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth.
- During the consultation, we will advise if an insolvency procedure is the most appropriate route forward or what alternative options are available.
- After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.
In summary
There are many options available to help directors with a business turnaround and company recovery, the selection of which will be based on appropriateness and the desires of the director. As we have outlined, there are both formal and informal solutions, and an effective recovery strategy may require more than one solution to run in conjunction.
The key to ensuring you recover and achieve the outcome you desire is to act fast and get advice.
Case Studies
ARB (Sound Vision Light Power) Limited
Kelly Burton • Leisure & Hospitality • Administration
Wilson Field has secured a new future for a Banbury headquartered events management company, which boasted clients including Crufts, Tour of Britain and Virgin London Marathon after it was bought out of administration.
ARB (Sound Vision Light Power) Limited was established in September 2014 and specialised in event hire including providing audio visual solutions equipment, hire and installation.
The company, which traded from Coton Cottage, Chacombe near Banbury, called in administrators from Sheffield-headquartered Wilson Field for formal insolvency advice.
The company, which has an impressive client list and relied solely on sub-contractors as and when needed, suffered VAT and HMRC issues as a result of a period of illness.
Kelly Burton and Lisa Hogg from Wilson Field were appointed as joint administrators on February 20 and concluded a pre-packaged sale of the business and assets for an undisclosed sum to ARB Motors Limited, lead by the same management team.
Kelly Burton, director and licensed insolvency practitioner at Wilson Field said:
Wilson Field was brought in to look at the situation of the business.
The focus on the company had diluted during a period of illness of one of the two directors. A debt was due to HMRC and a repayment proposal was rejected resulting in the need to protect the business and assets via a formal insolvency procedure.
The pre-packaged sale means the business, which was an established player in event management at large scale events, has a bright future moving forward.
The loss of a major employee’s input through illness can harm an organisation and it is important for businesses to seek help should this arise. Timing is essential to keep focus on the business.
ARB has combined experience of more than 100 years and provided hire equipment such as indoor and outdoor PA systems, single and double-decker commentary units, street sound vehicles, exhibition TVs, stage lighting and mobile power in both primary and secondary distribution.
National Videogame Arcade
Kelly Burton • Leisure & Hospitality • Administration
Image from GameCity.org [http://gamecity.org/]
The National Videogame Arcade is a unique national centre which is dedicated to history and development of computer and video games. The museum itself contains many rare and original videogames and consoles as well as a Toast Bar which serves a wide array of toast-based snacks.
Over its time, it has also been involved in working in collaboration with Arts Council England, Times Educational Supplement, Wellcome Trust and the British Library to name a few. These projects and collaborations focused on developing the role of videogames in culture and education.
Home of the acclaimed GameCity festival, The National Videogame Arcade in Nottingham, sadly fell into cash flow difficulties earlier this year despite an increase in its footfall. An eleventh hour investment by a director-led consortium, led by director Iain Simons, saved all 40 jobs at the increasingly popular tourist attraction and museum.
The cash flow difficulties led to the destination being taken into administration, Wilson Field’s Andy Wood and Lisa Hogg were appointed as joint administrators on 19th August 2016.
Andy Wood, an insolvency practitioner at business turnaround and insolvency specialist, Wilson Field, said;
“The investment story behind the consortium is based on the passion that Iain Simons and his staff have for the GameCity project.
“We were appointed as administrators after the company fell into financial difficulties, despite growing in popularity. The consortium of investors could clearly see the potential to turn the business around and with support from the staff, GameCity has a new future.”
Director of GameCity and investment consortium leader, Iain Simons, was very happy with securing the last minute investment and the service he received from ourselves; “The NVA is like no other facility within the UK and is rapidly growing in popularity. It was devastating to us when we realised that the business was in financial difficulty, but we knew it could be overcome.
“I have to give all credit to the staff here who volunteered to work without pay when we announced that the business was in trouble and this undoubtedly allowed us the time to pull together a consortium of investors to give the facility a bright new future and secure those jobs.
“GameCity is rapidly picking up pace and the Toast Bar, National Videogame Arcade and our collaborations with new partners in the UK and beyond are proving to be just as popular as we’d hoped.”
For more information on GameCity visit http://gamecity.org and for further information about our insolvency procedures, call us on 0800 901 2475.
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.
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