Free Initial Virtual Meeting Advice
With UK licensed Insolvency Practitioners.
As well-established UK Licensed Insolvency Practitioners, businesses are therefore preparing to come out of the lockdown, however now extended to July 19th,2021. Many businesses though have been affected by the Covid-19 pandemic, it is therefore important that we are still able to deal with clients face-to-face We are assisting companies with Liquidation and Bounce Back Loans. However, we have therefore implemented systems that allow us to have virtual meetings using computers, tablets & mobile phones, so that directors can then know who they are dealing with. To book a virtual meeting, click on the link below.
HBG Advisory treat every enquiry in total confidence.
An insolvent liquidation – When a limited company must close due to not being able to pay its bills as they fall due (cash flow insolvency), or the value of the company’s assets is less than its liabilities (balance sheet insolvency). Two liquidations apply to an insolvent company. A voluntary process is a Creditors’ Voluntary Liquidation (CVL) & Compulsory Liquidation.
If you have recently received a Winding Up Petition, it must be dealt with immediately as it is a serious threat to your company. We explain what one is and how it could affect your company.
If your business is experiencing Business Cash Flow Issues, it requires urgent attention to put your business back on track. We explore the options available, to pay company creditors rather than liquidation..
Insolvency Advice UK – Business Insolvency Specialists
As UK Licensed Insolvency Practitioners (Please read’duties of an Insolvency Practitioner‘) the practice offers Directors insolvency solutions, offered to directors of limited companies, partners of partnerships, sole traders and individuals who are in difficulty throughout the United Kingdom. HBG Advisory offers honest, straight-talking insolvency advice, which then gives directors solutions and comfort moving forward
Insolvency Test
Company insolvency and how it works in the UK?
Upon deciding as directors, your company therefore requires assistance, as your company appears insolvent. Then directors need to check the following:-
Balance sheet test
Are your company’s liabilities greater than its assets in value?
If so, the business remains therefore insolvent.
Cash flow test
Can I then liquidate with an unpaid Bounce Back Loan?</,
Can your business pay its debts as and when they fall due?.</’>
Legal action test
If your business is then subject to legal action that, if lost, will mean your business is therefore unable to pay, then again, the business is then insolvent.
Once agreed to appoint, the control of the company’s assets is then controlled by the licensed insolvency practitioner appointed. The IP then realises the assets and distributes the money raised in a strict priority to the creditors, with shareholders paid therefore then paid last.
Individuals or any association with fixed charge security registered to protect their interest over the company’s assets then remain paid first, subject to changes with the ruling December 1st, 2020 with HMRC ranking.
Then preferential creditors are therefore paid. This involves payments to previous employees covering their outstanding wages and holiday pay if owed at the time of the IP appointment.
Company creditors with a floating charge registered are then next to accept funds, pursued later by unsecured creditors.
Should funds be therefore available after the initial distribution, the practitioner will then pay the balance to the company’s shareholders?
For further information, please then read:’What is business insolvency in the UK? And what is insolvency for further clarity and peace of mind.
An Administration assists a company when it is experiencing severe cash flow difficulties, is therefore unable to meet overhead costs like leases, wages, rent etc., or when creditors are then pressuring the company which it does not have the cash to then pay. Appointing an administrator however allows a company to protect itself from compulsory liquidation. During the company administration period, a company can therefore restructure while under the control of an Insolvency Practitioner.
Company Voluntary Arrangement (CVA) is a rescue procedure that is an option sometimes used after an administration. A CVA may though be used without entering into Administration. One of our Insolvency Practitioners acts as Supervisors. A CVA is an agreement to repay company debts over a fixed period. Creditors agree to accept an agreed percentage of the original debt owed. Under a “CVA”, the company will continue to trade, having CVA creditors and new “Non CVA” creditors to pay while trading.
Restructuring and refinancing services, which do not involve any formal insolvency procedure, are termed a turnaround. To plan a turnaround, we assess the business, identifying the strengths and weakness of the company and highlighting areas of change or improvement. We work with the management of the company to develop a turnaround plan that works financially and is achievable.
Receiving threatening letters from HMRC but frightened to respond? Many sleepless nights for directors are directly related to out if the blue letters from HMRC. HMRC letters can be direct and often un nerving.
