Corporate Insolvency Services
What is Corporate Insolvency
A company or individual is said to be insolvent if they either do not have enough assets to cover their debts (i.e. the value of assets is less than the amount of liabilities), or are unable to pay their debts as they fall due.
Once a company or individual has become insolvent, there are several courses of action open, but they are different for individuals and companies.
Company voluntary arrangement (CVA)
Creditors voluntary liquidation (CVL)
Compulsory liquidation (CWU)
Members Voluntary Liquidation (MVL)
Corporate insolvency ranges from a small business, with two employees owing a few thousand pounds, to the collapse of large groups of companies. Some of the reasons are:
- Bank(s) and other financial service lenders not supporting the business
- Lack of financial management
- Insufficient investment capital (cash): too much credit
- Lack of general business skills (especially marketing skills)
- Poor product/service
- Too much cash taken from the business
- Falling out with business partner/s
Many owners of failed businesses would tell you that a lack of cash flow was responsible for the insolvency of their company. Cash flow is a symptom of one of the above reasons, not the cause of them.
Cash flow should only affect you if you had a customer who represented a large percentage of your sales, and they could not pay you (this is the danger of large orders in small businesses) or you overtrade.
A registered company can suffer a number of different forms of insolvency:
- a) Compulsory Liquidation
- b) Creditors Voluntary Liquidation
- c) Members Voluntary Liquidation
- d) Administrative Receivership
- e) Administration Order
- f) Company Voluntary Arrangement
A winding-up petition is usually initiated by a creditor, or a government department, due to an outstanding debt that the company has not paid.
The petition is served on the company, then advertised in the press with a date set for a court hearing. If the company has not paid the debt for which the petition was issued, and/or further debtors and/or company irregularities come to light, the court will usually approve a winding-up order.
The Official Receiver “OR” immediately takes control of all aspects of the company. The “OR” has twelve weeks in which to decide whether or not to hold a meeting of creditors: a meeting will usually be called if there is a prospect of payment to a creditor/s.
Whether you are an individual facing personal insolvency or a director of an insolvent company, we respond quickly and economically to meet your individual needs. We are well placed to advise you on all aspects of personal and company insolvency.
We provide independent, confidential and constructive advice to both individuals and companies who require flexible solutions, not only when they are in financial difficulties, but also where restructuring would assist in creating a stronger business to meet the challenge of a tough economic climate.
We work closely with other firms of professional advisers, accountants and solicitors to provide a specialist insolvency service to compliment their in-house capabilities and add depth in a highly complex and technical area where expert guidance can produce significant results for the clients or creditors as the case may be.
We always welcome enquiries and are happy to meet to discuss potential cases either at our offices or at the clients’ if more convenient.
Areas of particular expertise include:
- Individual Voluntary Arrangements
- Informal Arrangements with Creditors
- Company Voluntary Arrangements
- Creditors’ Voluntary Liquidations
- Members’ Voluntary Liquidation
- Compulsory Liquidation
For more information or to arrange a meeting, please contact us.
Global Asset Finance Limited
30 Friern Park,
Telephone: +44 (0) 7721 565802
Or alternatively, email any enquiries to: firstname.lastname@example.org
Click HERE to submit your details via our contact form and put the benefits of asset finance to work in your business.