Tag Archives: Creditors
Business Rescue
Posted on 16. Dec, 2009 by Liquid Your Company.
Business Rescue / Turnaround
Turnaround involves the restructure of a financially challenged company with or without the use of a formal insolvency procedure. This is only relevant for companies that have a viable business that can, if freed from debt, trade profitably.The Turnaround culture for financially distressed companies now firmly exists. [...]
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Liquidation
Posted on 16. Dec, 2009 by Liquid Your Company.
There are 3 types of liquidation
(i) Members Voluntary Liquidation
A Members Voluntary Liquidation MVL is a voluntary procedure to wind up the affairs of a solvent company.
Solvent, what does this mean?A company is capable of paying its liabilities in full plus statutory interest plus the costs involved in winding up, within 12 [...]
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Administrative Receivership
Posted on 16. Dec, 2009 by Liquid Your Company.
Administrative Receivership is a procedure that can only be instigated by a secured creditor with a valid floating charge over the assets of the company. This is usually the companys bank.
The charge must have been created prior to 15 September 2003. With a few exceptions, secured creditors with charges created after 15 [...]
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CVA’s
Posted on 15. Dec, 2009 by Liquid Your Company.
Company Voluntary Arrangement
There is legislation that enables a company to make a private arrangement with all its unsecured creditors. The CVA (Company Voluntary Arrangement) procedure was introduced by the Insolvency Act 1986 IA86 and is simply a formal mechanism which permits a company, which has debt problems, to reach a [...]
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Administration
Posted on 15. Dec, 2009 by Liquid Your Company.
Company Administrationis designed to protect companies from their creditors while a restructuring plan is developed. The type of creditor action that Company administration will stop includes:-
Bailiffs distraining on behalf of rating authorities
Landlords distraint for arrears of rent
Action by Revenue and Customs & Excise to enforce their debt
Following changes to legislation introduced in [...]
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