When an insolvent company enters a liquidation process, one of the key tasks for the insolvency practitioner (IP) is to sell the company’s assets before liquidation. In many cases, the assets are sold to third parties, sometimes to competitors or a director may wish to buy the asset from the company for personal use or [...]
A members voluntary liquidation in the UK is a formal process to close a company and must only be entered into if solvent, i.e. there are sufficient funds to pay their debts including tax liabilities and any contractual obligations. So, why close the company? There are a number of reasons why directors of a solvent [...]
If you are an investor with shares in a company, there’s always the possibility that the company may go into liquidation. If the company is solvent and it’s a case of winding up the company because it is no longer needed, or the owners wish to retire and there’s no-one to take over, as a [...]
As a shareholder of a company, you can expect to receive annual dividends. These are a distribution to shareholders of the company’s profit, which are normally paid from the company’s retained earnings. However, as a shareholder you may receive what are known as liquidating dividends. But what are liquidating dividends and when would a company [...]
It’s hard enough coming to terms with the fact that, as a company, you are struggling with debts and have been classified as insolvent. Usually a Creditors Voluntary Liquidation (CVL) is the right option and if the company has assets it can sell, i.e. machinery, equipment or even premises, they can be sold to pay [...]
Debt consolidation and debt counselling – these two terms can often be misunderstood. In reality, they are different. Debt consolidation is a physical solution to a debt problem, often in the form of a loan. Debt counselling, on the other hand, is a service for individuals, partnerships and businesses struggling with debt and not sure [...]
Last year there were 3,883 company insolvencies in Q1 alone and that figure doesn’t include those that went into administration or entered voluntary arrangements. In the UK, when a company goes bankrupt, which is called liquidation, it stops trading, is wound up and then taken off the register at Companies House. Insolvent limited companies go [...]
Any business can get into debt trouble, at any stage. This is when business debt plans come into action. Just because a business debt plan is being implemented, it doesn’t always mean that the company is about to close. It is possible to utilise debt for a long-term investment or as working capital. If you [...]
There are a variety of reasons why a company would enter voluntary liquidation; it could be a director or directors wanting to retire or it closing one company to start another. What’s more, it could be transferring assets from a company to its shareholders, due to a company restructure, or it could be just that [...]
The number of businesses that can say 2020 has been a good year may be less than previous years. Due to COVID-19, just about every business across the UK has suffered financially and this trend doesn’t look like it’s slowing up any time soon. Insolvency practitioners have never been so busy. Sadly, companies throughout the [...]
