Corporate Solutions

It is vital if a company is struggling to seek professional advice sooner rather than later. Rod Butcher, Adrian Woods and Richard Goodwin have been involved in many rescue situations and have the experience to offer advice on what can be done, what can’t be done, and what should be done, either as a pragmatic approach to an existing business or with the benefit of a formal insolvency procedure.

This is a procedure designed to allow a company a breathing space whereby it is protected from aggressive actions by creditors. During this hiatus period the company will prepare and present proposals to enable to company to do one or all of the following:

• Survive in whole or in part as an ongoing business
• Achieve a better result for the creditors overall than would be likely if the company was wound up
• Release property to make a distribution to secured or preferential creditors

If the core of a company is viable but finds itself insolvent by reason of say, a bad debt, then it can call a meeting of its creditors to consider proposals for a partial or deferred repayment to its creditors in respect of historic debt and the company would normally continue to trade.

The holder of a charge being either fixed, floating or both, created specifically to secure a debt has the power to appoint an insolvency practitioner as receiver to recover the debt. This would normally entail the receiver acting as agent of the company, and either selling the business as a going concern or closing it and realising the assets.