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Corporate insolvency

Existing legislation provides several alternative scenarios for members, directors and creditors of limited companies. The Insolvency Act 1996 and the Insolvency Rules 1986 introduced several new insolvency concepts such as company voluntary arrangements and administrations since which time ongoing legislation has adapted the original templates to provide the extended framework such as we use today. Please browse our full list of services to access more detailed information.

Administration order

An administration is a court procedure placing a company or partnership.

Advice to directors

When directors become concerned that the company may not be able to avoid insolvency, they should immediately seek advice from a licensed Insolvency Practitioner (IP) to assess and discuss not just the company’s position but also that of each director.

Company voluntary arrangement (“CVA”)

A CVA is a mechanism that allows an insolvent company to reach an agreement with its creditors to delay or compromise the payment of its debts.

Compulsory liquidation (“CPL”)

A compulsory liquidation is initiated by a creditor owed at least £750 who petitions the Court to formally wind up the company that owes the money.

Creditors voluntary liquidation (“CVL”)

This is a situation where the directors of the company have concluded that the company is insolvent and that after considering all other alternative insolvency procedures it has no option but to go into liquidation.

Members voluntary liquidation (“MVL”)

This is a procedure where a solvent company is able to formally end the trading life of the company, leaving no loose ends and possibly provide a tax efficient exit route for shareholders.

Receivership

There are three main types of receivers; administrative receivers, LPA receivers and fixed charge receivers.

Turnaround

Should your business be under performing and demands on your cash flow getting to the point where there is a real threat that everything will spiral out of your control.