Inability to pay any company debt now or in the future?
Value of the company assets less than the amount of its liabilities?
If the answer is ‘yes’ to either of the above, then it’s likely the company is trading whilst insolvent and the support of a licensed Insolvency Practitioner is needed. An Insolvency Practitioner understands the reasons for company insolvency and how to successfully manage company insolvency (incl. director duties). They will help limited companies, their directors and creditors; employing formal company insolvency procedures, when informal resolution isn't viable e.g. HMRC Time to Pay Arrangements. Call 0121 201 1720 for immediate insolvency advice.
Company Insolvency Procedures
There are five formal company insolvency procedures. Three are used to deliver the preferred option of company recovery and the others are for company closure. Choice of strategy will depend upon the company’s recent performance, its liquidity position, the business plan, the funding structure and current / future potential value. A resolution may involve financial re-structuring.
Company Recovery & Restructure:
Call 0121 201 1720 for immediate company insolvency advice. The ultimate aftermath to delaying company insolvency advice can be compulsory liquidation (the closing down or winding up the company). Further, for a director, the damage may not stop there. A breach of fiduciary duties of directors can mean an investigation into conduct and potential personal liability.
NB: For solvent companies requiring a closure, there is a Members Voluntary Liquidation (MVL).