Facing the reality that your business may be insolvent does not mean you cannot restructure or turn things around. Call our qualified insolvency practitioners at Berley to discuss your options.

With over 10,000 companies facing insolvency each year in England and Wales, knowing when to get the right support can make all the difference between protecting your investments or incurring a further loss. Talk to one of our insolvency practitioners today about your situations. Our top priority is to conduct a solvency review, discuss your options, and recommend a plan that best suits you and your company.

The sooner you get help, the higher your chance of a better outcome

Companies go through ebbs and flows. When money is short and prospect looks grim, you must take immediate counter measures to reverse the situations. Doing so will increase the likelihood of the company surviving. Do not hope that the issues will simply go away – they rarely do.

How do I know if my business is facing insolvency?

There are some signs that could indicate your business is facing insolvency. Some of these are:

  • No cash – if you cannot pay the day-to-day running costs of your business, you may already be insolvent.
  • Creditor issues – when you are getting calls or letters asking for immediate payment from HMRC, banks, suppliers and other creditors, you may get a winding-up order shortly.
  • No more credit – your bank won’t lend you any more money and your suppliers say you have reached your credit limit.
  • Unpaid wages – staff and company directors are not being paid.

These signs are indicators that your business is heading towards insolvency, if it isn’t already there.

Call 020 7636 9094 and talk to one of our qualified, licensed and experienced insolvency practitioners. Allow us to conduct a solvency review and discuss the available options with you. Our focus is on you and your company’s future, particularly how your company can be rescued and how your investments can be protected.

Once you are aware of your options, you can make informed decisions accordingly, which may include refinancing, restructuring, changing your company’s activities, reaching an agreement with your creditors, or even selling off the company. Liquidation should only be considered when all options are exhausted.

Company insolvency – what can I do as a director?

As a company director, you must ensure that you act in a responsible way and in the best interests of your creditors. This means you must not allow the company to continue trading and/or incur further debt. You should also take proactive steps to discuss the circumstances with a business insolvency professional.

If you seek help from an insolvency practitioner early, you stand a greater chance of saving your company. In this case, our insolvency practitioners seek to discuss the following with you:

A Company Voluntary Agreement (CVA)

In this process, if we are your appointed insolvency practitioners, we will work out an arrangement on how your company is going to repay its debts and when. This proposal usually provides a better option for your creditors than the company is immediately placed into liquidation. If 75% (by debt value) of the creditors agree, then the CVA is approved. As long as you continue to pay your debts as stipulated in the CVA, you will be safe from any pressure or legal action from your creditors.

Administration

In this instance, if we are your appointed insolvency practitioners, we will become the ‘administrator’ and your creditors cannot take legal action against your company to recover their debts or start compulsory liquidation without the permission of the court. In the meantime, we aim to:

  • Restore the company’s viability
  • Work out a CVA and seek approval from your creditors
  • See if it feasible to sell the business
  • Sell assets to pay preferential or secured creditors

Creditors’ voluntary liquidation

When a company can’t pay its debts and isn’t viable to a rescue plan, then it needs 75% (by value of shares) of shareholders agree to the winding-up. Once this happens, your insolvency practitioner will become a ‘liquidator’ to take charge of liquidating the company. In other words, they will oversee the process of winding-up and making sure that debts are settled in a fair and orderly manner.

Turnaround management

Transforming a financially-distressed company into a sustainable business requires new strategic and operational processes to control costs and improve profitability, often done through restructuring or making radical changes. Turnaround management takes time, effort, courage, as well as profound accounting knowledge from our chartered accountants.

Other options

Knowing other options like Administrative Receivership, Fixed Charge Receivership, Law of Property Act Receiverships, Compulsory Liquidations and their implications may help you to decide on your next cause of action.

Berley can help companies facing insolvency

Company insolvency happens more often than one would like to think and every situation has its own challenges. At this sensitive time, knowing who you can call to discuss the issues is key.

At Berley, our insolvency practitioners aren’t here to judge your circumstances. Rather, we are here to discuss your options professionally so you are clear about the next steps for you and your company. Once you have a plan of action, we will support you throughout the process too.

Talk to independent, licensed, experienced insolvency practitioners today by calling 020 7636 9094. We offer you a FREE initial consultation to discuss your situation in confidence.

Insolvency does not mean bankruptcy or you can’t start afresh

When your company faces insolvency, it also doesn’t mean that you will face bankruptcy – these two are very different. Insolvency may lead to bankruptcy if you have provided personal guarantees to any loans obtained by the company. In this case, you are liable for the guarantees which could lead you to go bankrupt.

Being a director of an insolvent company also doesn’t mean you can’t start afresh. You can still launch another company provided that the new company does not have the same or similar name as the insolvent company. Acting in good faith is paramount. Avoid engaging in unlawful conducts that could see you being disqualified as a company director for 2 to 15 years.

Contact one of our licensed insolvency practitioners today on 020 7636 9094, email us info@berley.co.uk or complete our Online Enquiry.