Professional advice should be obtained for specific situations. If there is a prospect of formal insolvency directors should not act in any way that materially worsens the position of creditors.
We can review the business and financial structure of the company and assist with a rescue process.
Many businesses that fail could have been saved if specialist advice had been sought in time. A typical rescue will include understanding the immediate financial position, managing urgent issues, talking to key stakeholders, including accountants, solicitors and investors, understanding the business, assessing viability, preparing a recovery plan and implementing it.
A "CVA" is a structured procedure for viable but debt ridden companies where directors stay in control. A Proposal is made to creditors for the delayed/reduced payment of debt. If accepted by 75% of creditors who vote it binds all creditors.
An Administrator takes charge with powers to remove directors, manage the business, cease trading and sell the business and assets. Proposals are made that may include a rescue or a wind down. An Administration "Phoenix" or "Pre-pack" involves the directors or a third party buying a business shortly after insolvency to continue the business.
For insolvent companies requiring closure the procedure is a CVL, initiated by directors. A liquidator realises assets and distributes funds as well as a range of statutory matters to wind up the affairs of the company.
An "LPA Receiver" is appointed over a specific property asset with powers to manage and sell the property.
In certain situations a company can proceed direct to removal from Companies House. However, advice in advance is vital to make sure it is feasible on a case by case basis.