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Business Rescue and Insolvency Services

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Business Rescue and Insolvency Services

Written by: 

John A Waller

Director

May 4th 2021

Licensed insolvency practitioners carry out business rescue and insolvency services in the UK.

Robust support and guidance are available, without therefore, using the traditional go-to services offered traditionally by you:

    • Accountant;
    • Bank manager or 
    • Lawyer?

There is, and you have found it!

The HBG Advisory site provides detailed information on your business’s position, what your obligations and options are, and what to do about it. HBG Advisory explain the options in clear, understandable, jargon-free English. We also describe the advantages and disadvantages, and we discuss the options with you in detail.

HBG Advisory and Business Recue and Insolvency

If a business requires rescuing, then it may well be insolvent. So, check to see if your business is insolvent? Business rescue refers to strategic processes adopted by companies encountering financial hardship to move forward. Turnaround and insolvency practitioners carry out these processes often with considerable success.

HBG Advisory helps many companies through the process of Rescue. We provide a free, confidential initial consultation to distressed business owners, either 

  • Online or 
  • By phone. 0800 612 5448

Our website offers many answers to the question asked over the years by stressed directors.

What are the main ways of rescuing a business?

Informal deal or ‘time to pay

If the company’s creditors threaten legal action, then consider an informal deal with creditors to satisfy the debt outstanding debt over a short period. Further, HBG Advisory may arrange a ‘Time To Pay’ (TTP) arrangement with HMRC if you have arrears of VAT or PAYE. For further reading, please view:

Company Voluntary Arrangement (CVA)

A CVA is a formal deal between the company’s creditors and the company, ensuring the debt remains repaid over an agreed period. The arrangement ring-fences your limited company from your company’s creditors legal actions chasing money owed – Part of the restructuring family in corporate insolvency.

A CVA differs from a Time to Pay in that once agreed by the company creditors:

  • Is a legally binding agreement;
  • Offers the opportunity to write off a % of the debt;
  • Payable over sixty months if required.

Pre-pack administration

If the company is under threat from an assertive creditor? Then considering selling the company in a pre-pack administration may be the best choice. Hence, it gets rid of debt and enables the business to advance. Moreover, it can end those sleepless nights quickly! 

Administration?

The principal aim of administration is Rescue, but it also gets a better outcome than liquidation. The administration is more of a recovery from intensive care than a straight rescue. A company administration is:

  • Expensive. 
  • Directors lose control, and it is a public event resulting in job losses.

Secure new finance

Occasionally, a lender loses confidence in a business’s ability to pay back its debts, and, as is its prerogative, it can therefore demand the whole loan paid in one go instead of the monthly instalments. If they are a secured creditor, they can call in the administrators to protect their position. This scenario doesn’t come out of the blue. Another lender may view the scenario with different criteria, take over the original lender’s place, and extend further credit. Lenders exist who assist businesses in distress. However, it is essential to note. Lenders will view such lends as higher risk, consequently requesting upfront charges and higher interest rates.

Business Rescue and Insolvency Services-What if the Rescue fails?

If the business is no longer viable, unfortunately, the only remaining option is to therefore liquidate the entity legally. However, if it is viable? Then a rescue procedure is therefore required if the entity used to trade has too much debt, but if restructured, the process may save the business itself. As example, in a pre-pack or a Phoenix company. 

Both remain complicated procedures, requiring legal advice on the consequences.

Directors often ask:

  • How does a company then get wound up?
  • The company has no money. How do we pay redundancy?
  • Is my home at risk?
  • What is a company voluntary arrangement? 
  • Directors duties and wrongful trading? 
  • Should I liquidate my struggling business?
  • Pre-pack administration work? 
  • Overdrawn director account?
  • I can’t pay back my bounce back loan?

The team at HBG Advisory have for many years assured directors of issues that concern them. 

They speak honestly and offer solutions, allowing those concerned to reduce their anxiety over financial issues. 

For further assurance, and detailed information on ‘company rescue and support‘, please view the team at HBG Advisory today.

Remember, you are however not the first, and sadly not the last to be in financial distress. However, many directors have said they wish they had acted sooner than later. 

How can we help?

The team at HBG Advisory has helped many businesses over the years.

Directors often ask at our initial meeting how can we help?

Licensed Insolvency Practitioners remain authorised to:

  • Deal with creditors of the company;
  • Sell assets;
  • Ring fence the company from creditor actions;
  • Protect company assets;
  • Collect monies owed to the company, and then 
  • Legally distribute money to creditors. 

So, concerned about your company’s financial situation?

Please then contact our approachable, experienced team, as detailed below.

The sooner you do, the quicker you therefore relieve stress and protect everyone’s financial position.

For information on the recovery of your limited company, please view ‘what does company recovery mean‘?

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