Rescue is always our priority.
Businesses owners are facing unprecedented challenges that affect all areas of their business. Our team have an excellent, longstanding record in advising and assisting businesses in financial difficulty.
If your business is in financial difficulty, speaking to our advisors early ensures the greatest opportunity to identify the best rescue plan for your business.
What are the signs that your business is in financial distress?
If you have seen a loss in turnover or cash flow and are struggling to pay bills, rates, taxes or wages or pay back loans, including those drawn down during COVID such as CBILS or BBLS, contact our team now. We are here to help.
How can CavanaghKelly help?
Our highly experienced team can quickly get to the bottom of the issues, identify and test possible solutions before considering a formal insolvency approach. Our close working relationships with financial institutions across the region allows quick access to key decision makers to identify where a work-out is possible.
We provide clear and concise advice and where businesses are unable to improve cashflow and profitability, we also provide specialist advice on formal insolvency proceedings.
We work closely with the business, its creditors and legal advisors to ensure the best outcome for all.
What options are available to my business?
When considering the routes available for business recovery, we look at your business position to understand all available options. This approach may mean moving to a more formal insolvency process or it may identify the problem and have it addressed outside of a formal process through a debt settlement or other corrective actions.
By speaking with our team early can mean more options are available.
Option 1: Accessing additional funds and turnaround
This could be additional funding from Directors, Shareholders or third parties. It could be loans or equity investment. It could be refinancing unencumbered assets. Mortgaging property. Debt factoring or perhaps the sale of surplus assets.
Option 2: Time to pay or standstill agreement
This can be an option with HMRC, secured lenders or key suppliers.
Option 3: Company Moratorium
This option provides businesses with some “breathing space” to formulate a rescue plan for forty business days, without creditor approval. It can also be extended for up to one year, but this will require creditor or court approval. This option prevents enforcement of security or commencement of insolvency proceedings; however, all ongoing liabilities must still be met throughout the process.
Option 4: Company Voluntary Arrangement (CVA)
A CVA is a legally binding agreement that allows a company to repay an agreed amount of its debts over a set period of time, usually two to five years. This is a rescue mechanism for companies with a sound core trading business. It is very flexible and can be tailored to most circumstances and allows the directors to remain in control, while an Insolvency Practitioner, such as our team at CavanghKelly supervise, the CVA process. To gain approval it will require the support of 75% of the business’ creditors.
Option 5: Administration and Sale
Administration is a more formal and technical procedure which can rescue either the whole or part of a business. It involves the appointment of an Insolvency Practitioner who takes control of the company. Administration can also include the rescue of a business via a pre-packaged sale. A ‘prepack’ is effectively a deal for the sale of the business which is agreed before the company goes into Administration and completes almost immediately therefore, allowing the new entity to continue trading without interruption.
Option 6: Creditors Voluntary Liquidation (CVL)
A CVL can be an effective process which enables Directors to formally close an insolvent company voluntarily. It’s often the most appropriate solution where no other viable rescue option exists. Whilst it does mean the company will be wound up, there could be options to transfer the trade, assets or business to another company prior to or as part of the CVL. However professional advice needs to be taken in respect of this and there are some restrictions around the re-use of company names.