Current options for insolvency will generally inclue one of four basic procedures.

These are as follows:

ADM - Administration

  • Meet with the insolvency practitioner for advice and a review of financial position
  • If the company is under threat of creditor enforcement action - file a Notice of Intention Administrators which will provide the company with protection for 10 business days
  • Instruct agents to provide a valuation of the business and talk to interested parties
  • Try to agree a sale of the business
  • File Notice of Appointment of Administrators and then look to compete an early sale of the business

Meet è Plan è Notice of Intention è Instruct Agent è Notice of Appointment è Sale

 

CVA - Company Voluntary Arrangement

  • Meet with the insolvency practitioner for advice and a review of financial position
  • Consider proposal for a CVA
  • If the company is to trade during the CVA it must be profitable and cash positive to provide funds to a supervisor
  • Speak to key creditors to try to get them on board
  • Consider effect on customers/contracts
  • Call meeting of creditors to consider proposals
  • Arrangement may be up to 5 years

Meet è Consult Creditors è Prepare Proposal è Meeting of Creditors è Appointment

 

CVL - Creditors Voluntary Liquidation

  • Meet with the insolvency practitioner for advice and a review of financial position
  • Deal with cessation of business and dismissal of staff
  • Issue notices to creditors/shareholders
  • Prepare statement of affairs and report on the trading history
  • Convene meeting of creditors/shareholders to appoint liquidator
  • Consider restrictions on re-use of the company name

Meet è Cessation of Business è Meeting of Creditors è Statement of Affairs/Trading History è Re-use of Company Name

 

CPL - Compulsory Liquidation

  • A winding up petition will have been presented against the company
  • A hearing of the petition will take place at court
  • The business will have usually have ceased to trade
  • The Official Receiver may be appointed as liquidator
  • The directors may need to attend the Official Receiver's office for interview

Petition è Court Hearing è Official Receiver Appointment