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Business recovery & insolvency

Business turnaround and cash flow problems

Cash flow is the life blood of any business. If you are experiencing problems controlling debtors and paying bills when they become due, then you should consider talking to our turnaround team. They can give you guidance on how to reduce debtor days and improve your cash flow situation. They can also negotiate with your creditors and the bank. Seeking early advice can often turn an ailing business into a successful one.

Investigations and monitoring

Critchleys' experienced business recovery team will prepare reports and recommendations for investors, bankers and directors. They will also undertake viability studies and provide monitoring services to banks and other lenders.

Corporate Voluntary Arrangements

The team will prepare proposals to put to company creditors offering partial or scheduled payment of debts as an alternative to liquidation.

Administration orders

The Enterprise 2002 Act introduced a more streamlined and user-friendly process where it is possible to reconstruct a business through an administration order. This may involve raising new capital, or arranging loan facilities which aim to return the company to profitable trading.

Administrative receiverships

These are being phased out as legislation introduced in The Enterprise Act 2002 takes effect. They have been abolished except in certain very limited circumstances.

Creditors' meetings

A member of the Insolvency team can be appointed to represent you or your clients at creditors' meetings. They will provide a prompt and objective report upon the meeting and its outcome.

Creditors' Voluntary Liquidations

Directors of insolvent companies should seek advice immediately. Failure to act in a proper manner can result in breaches of the Insolvency Act and involve the directors in personal liability for company debts. A member of the Insolvency team can offer the best advice on actions to be taken before the appointment of a liquidator. They can also accept the shareholders' nomination as liquidator.

Members' Voluntary Liquidations

When a solvent company wishes to cease trading, the directors can arrange to put the company into liquidation and distribute the assets to shareholders. Where appropriate, Critchleys can work closely with the company's existing accountants, taking special note of the tax situation.

They can also advise on reconstruction liquidations where one company splits into two or more businesses.

Independent review

An independent review can offer significant benefits to a company and its bankers. Company directors are frequently unwilling or unable to see the facts and will unwittingly distort information to give a better picture. As all lenders are reliant upon the information supplied by the directors, they need to exercise caution.

Critchleys will quickly investigate the current position and prospects, and report accordingly. A sound business should be organised so that it can thrive; if a business is in difficulty, it is often better to stop it at an early stage to protect the interests of the participator and the creditors.

Personal insolvency as a result of business failure

In many cases, business failure can lead to financial difficulty for the proprietor, often due to personal guarantees, leases and other related liabilities.

The Insolvency Act 1986 placed a greater responsibility on directors of insolvent companies, including wrongful and fraudulent trading which may lead to personal liability and directors' disqualification

For more information about how we may be able to help, please see Personal Insolvency page