Business challenges can lead to financial distress, and in such situations, Beavis Morgan offers practical guidance for companies facing potential insolvency. When financial difficulties arise, engaging a licensed insolvency practitioner becomes a crucial step. This is where Moorfields Advisory, part of the Beavis Morgan group, plays a key role.
Assessing the Financial Health of Your Company
The first step in addressing insolvency is a comprehensive assessment of the company’s financial status. This includes examining debts, repayment possibilities, creditor relationships, and the long-term viability of the business.
Restructuring Options
For companies with potential for recovery, restructuring could be a feasible solution. This often involves a Company Voluntary Arrangement (CVA), a formal agreement with creditors for debt repayment. Obtaining creditor approval is essential for a CVA, and this is where Moorfields Advisory’s experience can be particularly beneficial.
Administration as an Alternative
If a CVA is not viable, placing the company into administration might be considered. Administration provides a protective period against creditor actions, allowing time to reassess and reorganise the business.
Closure Procedures
In cases where recovery is not possible, an orderly closure process needs to be considered. Solvent companies may opt for a strike-off at Companies House, while insolvent businesses will need to undergo formal liquidation, either voluntarily or through court orders.
Guidance from Beavis Morgan and Moorfields Advisory
Beavis Morgan, in partnership with Moorfields Advisory, offers guidance to companies navigating these challenging scenarios. We provide straightforward advice to explore all available options for restructuring or closure.
For advice on restructuring and insolvency matters, contact your usual Beavis Morgan Client Partner in the first instance, or email info@beavismorgan.com. Our team is ready to assist in finding the right solution for your business.