Company Rescue, the method of improving a struggling company(potential insolvent business), while being advised by a rescue expert, a licensed insolvency practitioner.
A company rescue is similar to business rescue. The only difference being a company rescue refers to an incorporated entity. A business though may also include the rescue of a ‘partnership’ or ‘sole trader‘.
Numerous processes may be adopted, including the IP managing the day to day affairs of the company.
Recent changes due to the Coronavirus COVID 19 include protecting the company from creditors legal action using a moratorium. This allows the company to attempt getting back on its feet financially as well as operationally.
Company Rescue Options Available
1. Company Finance
2. Invoice Finance to Kick-start your Cash-flow
3. time to pay arrangements
Introduce a formal insolvency rescue process
1. Company Voluntary Arrangement (CVA)
2. Company Administration
The timescale of a Business Rescue?
The response depends upon the:
- Procedure opted for used,
- Size of the company and
- Complexity of its financial circumstances.
A company voluntary arrangement might take a few weeks to propose and agree on approval.
Placing a company into administration is typically a more protracted procedure requiring six months or more depending on its ultimate aim and realisation’s complexity.
Company rescue and free insolvency advice.
Running a limited company has many areas directors need to be focused on during a company rescue.
Cash flow problems within your business are a priority if you are to remain to trade.
During the present Coronavirus COVID 19 Pandemic. It isn’t easy to plan your way forward. Concerns over Solvency of your business introduce you to words such as:-
How then do they affect you if at all?
For further reading, please view:’Company rescue & recovery‘ & ‘What does business recovery mean?’
Viewing the pages attached to our website will then answer any many questions asked by worried directors.
Our website offers FREE CONFIDENTIAL support online, in the privacy of your own home or workplace. If you wish to arrange
an online meeting view book a virtual meeting to discuss further, a Company Rescue.
For further guidance on the COVID19 situation, please then view companies affected by Coronavirus COVID19.
Our team have over 30 years of Insolvency and Turnaround expertise. We have Licensed Insolvency Practitioners (Members of the Insolvency Practitioners Association), who are, therefore, qualified and experienced commercially, to explore and plan a solution acceptable to you while securing creditors of your business. Directors, however, require assurance throughout any process.
HBG Advisory provides directors with business insolvency advice & support.
Initial Process of a Company Rescue
To help assist you during these difficult times, we outline what our initial support will involve covering company rescue & recovery.
- Due to the current Coronavirus situation, We then arrange a virtual meeting to ensure confidential advice safe and secure.
- HBG Advisory strive to understand your companies position financially. Are you under legal pressure, How is COVID 19 affecting you and what is your cash flow?
- Once we have concluded our questions, then we shall respond in writing (Confidentially) with a “for your eyes only” report. The report outlines what is required to either put your business back on a level footing or cease trading and close correctly safeguarding everyone.
- Finally, once you have decided on what action you wish to take, we may then support you moving on.
What Results When a Company Rescue Fails?
Liquidation ceases a company as an entity for good and is removed from the registrar of companies. All company employees will be made redundant, along with the companies assets being sold.
A pre pack administration offers the directors an option to buy assets required out of the insolvent company. They then once paid for would rest in a new company. Often referred to as a ‘phoenix’ of a business. The process, therefore, saves jobs and the continuation of the trade-in a newco.
To view members of our senior management team, please then view The TEAM at HBG Advisory.
Assistance with rescue advice:
To arrange a free meeting with HBG Advisory, and discuss a Company Rescue, please: