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.
Companies
Administration
Overview
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 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 one or more of its secured or preferential creditors.
The IP as Administrator has the power to continue…
Company Voluntary Arrangement
Compulsory Liquidation
This procedure allows a Company to be wound up by order of the court following the presentation of a winding-up petition. It is usually started by a creditor who is owed money the Company has not paid, and a creditor does not have to try other ways to recover the debt first. 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. Unlike a Compulsory Liquidation, the company (acting through its members) nominates a Liquidator; the creditors then decide, and may appoint someone else instead. The Liquidator once appointed will deal with realising any assets of the company and making distributions to creditors.