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Recovery of your Company Financially

Recovery of your Company Financially. Written by John A Waller. Director. Reviewed November 7th,2022.

Company directors have many ways to consider your company’s recovery, financially. However, the options vary depending on the financial stability of the company?

Options:

  • Additional funding.
  • Consider restructuring the company, including debts & assets.
  • Listening to insolvency solutions from a licensed insolvency practitioner.

Recovery Of Your Company Financially And How HBG Advisory may help?

We need to analyse the current position of your company. Our advisers determine in which way we can help you move forward, and then we arrange a free consultation.

HBG Advisory operates nationwide across the UK. We meet at convenient locations, respecting privacy and confidentiality. Therefore, if you look at our homepage, you can book a virtual meeting if security is a concern.

The IP assesses your company’s situation and then offers free initial advice. We explain in clear English, options available, followed by advice given in writing.

Options for Recovery

HMRC “Time to Pay Arrangements” (TTP)

A Time to Pay Agreement with HMRC – Informal Solution, ideal for companies with excellent payment records with HMRC.

TTP arrangements help companies pay outstanding corporate tax, PAYE / NI or VAT in instalments.

However, HMRC requires convincing, so your company can pay the repayments before approving a proposal.

Company administration

Administration quickly protects troubled companies from creditors. An Insolvency Practitioner (IP) then takes control of the business, and creditors cannot take any further legal action. This gives time to sort issues out.

The administrator needs to achieve one of three outcomes:

  1. Rescue the company as a “going concern”;
  2. Obtain a result better than liquidation.
  3. Realising better value in company assets for “secured” or “preferential” creditors.

Administrative receivership

Administrative receivership then protects creditors with a floating charge registered over debtors.

When terms of borrowing are breached, an insolvency practitioner (IP) is appointed. They, therefore, administer the business and recover the debts owed. Usually, by the sale of assets, before then handing the company back to the control of the directors.

A further option is the sale of the whole business as a going concern.

Recovery of your Company Financially – Company Voluntary Arrangement (CVA)

A CVA agrees how the company may repay debt. Creditors then approve a plan including all unsecured debt of a company. Once approved, it is then legally binding.

Companies often use a CVA for recovery. Allowing debt renegotiation while trading. Interest and charges stop, creditors then cannot take further legal action.

The CVA may therefore last 5 years, once completed, outstanding unsecured debt is written off.

Recovery Of Your Company Financially If rescue, not an option?

However, the recovery of companies is not always possible, the liquidation is the optio.

So a liquidation then deals with the issue. You may choose from two types of liquidation to close formally a limited company.

A  voluntary option:

A compulsory options:

Summary

Many options exist, assisting directors then turnaround their company to recovery. 

Do not forget then about Directors Redundancy.

Act quickly, ask for help and support now!


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