Our Partner led team are experienced in Insolvency matters with Jeremy Bleazard Licensed to act in the UK on formal insolvency appointments.
Each scenario is different so the earlier the discussion the more options are available.
Creditors Voluntary Liquidation
This is the most common type of liquidation and the majority of XL’s formal insolvency appointments are in this form.
When a director of a company is no longer in a position to pay its liabilities, they can instigate the liquidation process. Creditors and shareholders are contacted for them to decide on the liquidator. Once appointed the liquidator tries to maximise the possible return to all creditors. This could include selling the assets of the company back to the existing director(s).
We understand that if your Limited company is facing threats from creditors it can lead to anxiety, stress and sleepless nights. Taking that first step in the company liquidation process will begin to ease the worry, and our experts will make the whole procedure as smooth and hassle-free as possible.
The timing of the liquidation is in the hands of the directors.
Members’ Voluntary Liquidation
Members voluntary liquidation is often the ideal solution for companies or organisations who want to retire, step down or simply no longer want to run the business or organisation. It is also an ideal choice for a restructured group with surplus companies.
This solvent liquidation is a process that is initiated by the directors because the business has reached the end of its useful life and there are sufficient assets to enable repayment of all creditors in full within 12 months with surplus funds being returned to shareholders.
A compulsory liquidation is usually where a creditor forces a company into liquidation through the courts for non payment of a debt. Most compulsory liquidations are dealt with by the Official Receiver. Occasionally they are passed out to an Independent Insolvency Practitioner. There is a Government fee charged to each case.
Company Voluntary Arrangements
In laymen’s’ terms, this is a deal put to the company’s creditors. The deal varies from case to case but can be anywhere from 1p in the £ to payment in full. The deal has to be agreed by 75% or more in value (£) of the creditors of the company. Once the deal is agreed it becomes legally binding.
A Voluntary Arrangement allows the company to trade on but freezes the historic debts of the business
An Administration is a insolvency process where a Court application has to be made. The process can be complex as there are different people who can appoint an Administrator.
The main difference between Administration and liquidation is that the Insolvency Practitioner has the ability to trade the business on if they so wish.
A “PrePack” Administration is where the business is marketed for sale on a confidential basis, prior to the Administrator being appointed. This enables the “Goodwill” of the business to be protected and help achieve better realisations. Usually on appointment, a sale of the business or assets is concluded shortly thereafter.
We understand that Administration can be an overwhelming experience for any business and always endeavour to talk you through the entire process and provide honest advice whatever your situation. Our team have many years of experience and have dealt with Administrations of all sizes and types of companies in ever different industry.
Non Insolvency Options & Advice
A formal insolvency option is not always required to solve the problems of a business in financial difficulty. We have a large network of solicitors, asset based lenders and accountants who can assist in the refinancing of your business
We’re here to help
Whatever you are concerned about, our experts can help. We tailor our insolvency advice and consultancy according to your situation in order to provide an individual, comprehensive and effective service.
There are many different options available, so we start by assessing what would be the best route for you and your company. Our team of professionals have many years of experience in insolvency for all types of companies and are here to work through your concerns and find the best outcome for your business.