Phil MeekinView Profile
Unless you have chosen an insolvency-related career or have been unfortunate enough to experience severe financial problems in the past, there is a good chance you will have limited knowledge of what services are available from an insolvency practitioner.
Headlines about football clubs “going into Administration” or large employers “going into Liquidation” are commonplace. As well as mentions of winding up orders, LPA Receiverships and voluntary arrangements, it all sounds pretty grim and terminal. And some of it is – particularly if business owners fail to take early advice when they face financial difficulty.
But the insolvency industry does much more than “bust” companies. Recently, the prompt, pro-active actions of a business director seeking advice from Wilson Field had far reaching consequences. The company provided care assistants into the homes of people needing help. Faced with the fact the company could no longer trade profitably, the director could have walked away from the company. So the main creditor (the taxman) would have received nothing. Instead, the company was placed into Administration until its sale as a going concern could be arranged. The result – 60 staff retained their jobs, numerous vulnerable and elderly clients were not abandoned and Her Majesty’s Revenue & Customs whilst not fully repaid did receive a significant amount. The director gained nothing other than the knowledge that his staff and clients had not simply been abandoned.
Running a business is not easy – particularly in the current climate. Businesses depending on public sector contracts or operating in industries such as retail, leisure, construction or haulage are probably concerned about future sales. They are also probably wondering if their bank will support them if they hit a snag. And heavily-borrowed businesses will doubtless be concerned about the prospect of interest rate increases.
Insolvency practitioners have a number of tools at their disposal including access to private investors, sources of finance and equity in certain circumstances.