The last couple of years have been extremely difficult for businesses of all sizes, particularly for some industries, such as retail, travel, and hospitality. The coronavirus pandemic has hit companies hard and with support from the government ceasing in the last few months, many are struggling to stay in business. Negotiating a Creditors’ Voluntary Arrangement [...]
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 [...]
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 [...]
When a creditor lends money to a company, it is taking a risk. Whether the creditor is a bank or other lending institution, a credit card or mortgage provider, bond purchasers or utility companies, or an individual, director or shareholder, lending money is a risky course of action, particularly if the debtor defaults on payments. [...]
Being in a position where you’re unable to pay your company’s creditors is extremely stressful. In an attempt to avoid increasing the level of debt, many companies try to negotiate directly with their creditors and agree to an informal arrangement. If the debt is quite small and owed to one creditor, and the creditor is [...]
Is financial stress getting to you? Are the pressures of paying bills getting too much or is there simply never enough money to keep creditors happy? It can be a very tough situation to find yourself in. Debt consolidation can be a great solution to all of the above financial problems but it is very [...]
I’m sure many of us have been in the situation of having a company that owes us money but being unable to contact them. They don’t answer emails, telephone calls are ignored, rumours fly around about the business struggling. In these circumstances, questions arise. Are they still trading? Has the business closed? Are they in [...]
Choosing the right insolvency practitioner for your UK business is very important. You may be looking for someone to help you close your business or to get help turning it around with the aim of restoring profitability. Either way these are specialist skills, which is why you need a dedicated professional. The choice you make [...]
Businesses get into trouble. Even good businesses can have bad periods. Sometimes it is down to being run poorly, other times it is simply bad luck – you never know what is around the corner. But when the trouble starts it can be very worrying and very difficult to turn around. That’s when you want [...]
