An increasing number of directors are finding it difficult to keep their businesses afloat in this uncertain economic climate. This has also let to an increase in household debt which has touched a large number of individuals nationally.
Administrations are primarily geared towards promoting the recovery of Companies that are or are likely to become insolvent by placing them under the control and guidance of a qualified Insolvency Practitioner (“IP”) at AABRS. Each administration must aim to achieve at least one of the following purposes, which are to be considered in order:
a. To rescue the Company as a going concern;
b. To achieve a better result for creditors as a whole than in a liquidation scenario;
c. To realise the Company’s property in order to make a distribution to its preferential and secured creditors.
The IP as Administrator has the power to continue…
Company Voluntary Arrangement
This procedure permits a Company to be forcibly wound up following the presentation of a petition at court. It is primarily instigated by creditors who have exhausted all other routes to recover the amount due to them from a Company. It may also be an appropriate course of action where there is “management deadlock” within a Company, resulting in the Directors or shareholders being…
Creditors' Voluntary Liquidation
A Creditors’ Voluntary Liquidation is a process which enables Directors to formally close an insolvent company. A benefit of a CVL is that unlike in a Compulsory Liquidation, directors’ are able to nominate their own Liquidator. The Liquidator once appointed, will deal with realising any assets of the company and making distributions to creditors.