Corporate Help

Options for Dealing with Corporate Financial Problems

There are no problems too large or too small. There are only problems. Let us guide you to a brighter tomorrow.

The following are the main solutions available to individuals with financial problems.

Reorganisation	Sell non-essential assets or alter company structure to return to profitability. Close divisions, make redundant, manage cashflow or sell part/all of business . Sale of business.
	Advantages Maintain existing trading activities Preserve relationships with employees, suppliers and other interested parties Retain control of company	Disadvantages Must be foreseeable future for company Difficult to do correctly
Informal arrangement	Negotiate with creditors individually to achieve a settlement of the entire debt, reduce interest payments or extend terms of agreement
	Advantages Cheap to achieve Can reduce pressure if agreement reached	Disadvantages Not legally binding Not all creditors may agree May impact ability to trade with essential suppliers
Company voluntary arrangement (CVA)	Formal agreement with all creditors to agree settlement of debts at a rate usually less than 100%
	Advantages All creditors bound No comeback from creditors as long as agreement is maintained Agreement is completely flexible Costs of CVA and payments to creditors can be drawn from contributions All creditor action frozen Retain control of company	Disadvantages Needs 75% in value of creditors to agree Can be costly to achieve Could last up to 5 years
Administration	Court process to instruct insolvency practitioner to take control of company and realise assets, from selling business to forced sale
	Advantages Ability to continue trading so as to maximise realisations Business may be sold and employees’ jobs saved	Disadvantages More costly than liquidation Lose control of company Investigation into conduct of directors
Liquidation	Normally closure of company and forced sale of all assets. Appointment of insolvency practitioner to take control of company.
	Advantages Closure of financial problems	Disadvantages Lose control of company Termination of business Employee redundancies Investigation into conduct of directors

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