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Debt Help/Business Recovery
i) Corporate/Business
Cashflow Services offer a full spectrum of rescue and turnaround assignments on behalf of companies, partnerships and individuals who find the viability of their business in question.
Confronting financial difficulties in any business, and particularly in hard-pressed owner-managed and SME businesses, involves significant management strength and self-awareness. The temptation to neglect or deny the problem is often huge and, if panic sets in, commercial judgement can desert even the most experienced of business professionals.
Not all distress situations lead to liquidation however, nor even the need for formal protection.
By identifying trouble and moving quickly to seek assistance, a company or business willing to make changes in the way it operates and enter into informal agreements with its creditors can often avert a crisis and, in many instances, return a company or business to profitability.
The recovery and insolvency solutions in which we are expert are:
- Informal Agreements
In this situation our partners’ work alongside you in the stabilisation and ongoing management of your business, reaching agreements with creditors on scheduling repayment, and helping you to restructure processes with the objective of rescuing the business. In these situations, we are able to provide assistance in raising finance, restructuring management teams, divesting the business of under performing units and various other strategies necessary for an effective rescue.
- Formal Agreements
UK insolvency legislation provides two kinds of ‘formal’ protection for companies in difficulty:-
Company Voluntary Arrangement, (CVA), enables a company to reach a binding arrangement with creditors based on a 75% majority vote of voting creditors. The arrangement is then legally binding on all creditors, regardless of whether or not they voted. This is a highly effective way for a company to negotiate professionally with its creditors without falling victim to the possible short-term agenda of smaller interests. Cashflow Services are not licensed to act as a nominee and supervisor in a CVA, however we do appoint a licensed Insolvency Practice to progress
Administration provides a rapidly implemented breathing space, by placing the company under the control of a licensed Administrator appointed by Cashflow Services. Once in Administration the company is protected from adverse actions of creditors while the Insolvency Practitioner work with you and your creditors to formulate acceptable proposals on the future of the business. Once the future direction has been agreed by all parties the Administrator then returns executive control of the business.
- Liquidations
There are of course situations in which a company cannot be saved, or in which liquidation offers the most desirable solution all around, and Cashflow Services possesses enormous experience in helping owners and directors through such eventualities. Various winding-up procedures exist including Creditors Voluntary Liquidation, Compulsory Liquidation and Members Voluntary Liquidation. In the extreme event of a company finding itself faced by such a challenge the professionalism and empathy of Cashflow Services will be there to guide and support throughout.
ii) Personal
Whether you are an individual faced with an accumulation of credit card debt or a sole trader faced with business related debt problems, Cashflow Services has the experience, understanding and discretion needed to help you resolve your situation.
The earlier you contact us to make us aware of your situation the easier it will be for our expert insolvency partners to assess and understand your personal financial circumstances, and to help you organise and manage the repayment of debt.
Though this can involve the negotiation of informal agreements with creditors, in many cases an Individual Voluntary Arrangement (IVA), which places a freeze on interest and penalties throughout the period of the arrangement, are made to schedule a realistic repayment process, which will prove the best solution for an individual and his creditors.
Cashflow Services will appoint an Insolvency Practitioner licensed to act as Nominee in seeking IVA protection for clients in this situation and have helped a considerable number of individuals and businesses overcome temporary problems and get their finances on the road to recovery.
iii) Pre-pack Administration
When a company is to go into Administration and needs to be sold as a going concern and cannot afford to cease trading then the directors, in conjunction with the proposed Administrator, will obtain an independent valuation which will be carried out by professional qualified valuer. This valuation will be used to negotiate a sale contract which will be drafted and ready to be signed on the same day as the appointment of the Administrator.
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