What is Administration?
Administration is a formal insolvency process, which puts an immediate ring fence around the company and its assetsRead More
What is a CVL?
A CVL is a Creditors’ Voluntary Liquidation. This is when a company can no longer pay its debts as they are demanded, its directors are under an obligation to take all possible steps to minimise the losses suffered by its creditors.Read More
What is a CVA?
A CVA is a Company Voluntary Arrangement. This is a legally binding agreement with the company's creditors. It allows a proportion of the debts to be paid back over time, the company to carry on trading as usual and the company directors to remain in control.Read More
- What is Administration?
- What is a CVL?
- What is a CVA?
Restructuring & Insolvency
Sometimes the financial situation for a business or an individual is so critical that the only way forward is the use of one of the formal insolvency procedures in order to bring closure or facilitate a restructuring to put the business or the individual back on a sound financial footing.
Opus can provide advice on all of the UK insolvency procedures and as the Partners are all licensed insolvency practitioners they act as office holder where this is appropriate. Initial consultations are confidential, provided free of charge and without obligation. Fees are based on time or a fixed fee set at the outset of the process and in some instances on a success basis.
Summary explanations of the various procedures can be found by clicking on the links below.
An Independent Business Review (IBR) is often needed when a company is showing signs of distress. Usually a secured lender or funder that will instigate this however Management may also do so looking to assess the financial health or operational capabilities of their company.
Administration is designed to deal with situations when there is an urgent need to protect the value of a business from enforcement action by unpaid creditors or where a viable business needs breathing space to regroup and implement a survival strategy.
A charge holder with a floating charge can appoint an Administrative Receiver if they hold security that pre-dates the Enterprise Act. Preventing your company from being forced into Receivership depends on how quickly you take engage with the charge holder. Alternatively you maybe the holder of a charge that entitles you to appoint Receivers.
When a company can no longer pay its debts as they are demanded, its directors are under an obligation to take all possible steps to minimise the losses suffered by its creditors.
A CVA is a legally binding agreement with the company's creditors. It allows for the company to carry on trading and for the directors to remain in control in consideration of the repayment over time of an agreed proportion of the debts.
Creditors can petition the Court for a company to be put into Compulsory Liquidation if they have exhausted all avenues to recover monies owed to them.
If a lender has a fixed charge e.g. mortgage over a property or other assets, it will usually have the power to appoint a Receiver to take control of the asset and sell it on behalf of the lender to repay its debt.
This type of restructuring is often used to dissolve a company that is no longer needed. For groups, this process can improve its overall value. There are also additional types of restructuring procedures that can be used to simplify a group structure.
Partnership Administration is available to Partnerships in the same way as Administration is for a limited company and provides the protection to restructure a business that is operated through that structure.
A Partnership Liquidation involves the collection of the remaining business assets, settling any remaining debts owed to non-partner creditors and distributing the remaining assets to the remaining partners.
Just as with a company in financial distress, a partnership can negotiate an arrangement with its creditors to give it the breathing space to deal with its problems, either through agreeing debt write offs or deferring payment of liabilities to ease current cash flow constraints.
If you are in financial distress, there is a variety of solutions available to you which can provide a practical, workable solution to your debt problems.
Although being declared bankrupt will always carries some stigma, for many people struggling with personal debt it will be the best way forward and more appropriate for their financial circumstances than an Individual Voluntary Arrangement or debt management plan.
An IVA is a legally binding agreement between an individual and their creditors. It allows an individual to reorganise their financial affairs and takes away the devastating stress caused by being under sustained financial pressure from the people to whom they owe money.
A Debt Arrangement Scheme is a form of Scottish insolvency that enables someone in debt some respite. Through a debt payment programme, the person can repay their debts in full over an extended period of time.
A Protected Trust Deed can be used by Scottish residents as a voluntary but formal arrangement to pay an affordable amount of disposable income to repay an element of unsecured debts. In a Protected Trust Deed, the debts that cannot be repaid are written off.
Sequestration is form of Scottish insolvency that is designed to be used only as a final option when an individual is unable to meet their unsecured debt.
Our creditor services are designed to assist our clients by alleviating the administrative burden imposed on creditors by the insolvency process and by attending creditors meetings on your behalf allowing us to report to you on the likely recovery of your debt.
Combining professionalism with a personal approach
“Jo and her team go beyond what is required. She combines professionalism with a personable approach, which is so vital when often dealing with delicate matters, meaning she is a pleasure to work with.”
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