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Navigate financial distress

Are you sailing into troubled waters? Already in a bad storm? Have you or your customers or suppliers experienced:

  • Recent loss of a major customer
  • Recent expansion into a new or unknown market
  • Making asset sales to reduce debt
  • Struggling to service debt burden or sailing close to banking covenants
  • Deterioration in trading results, or overtrading
  • Management team ‘fire fighting’ issues rather than running the business
  • Growth in creditor arrears and no repayment plans
  • Legal letters demanding payment or unreleased cheques in the drawer
  • Unusual movements in other working capital items such as stock and debtors

These are all signs of financial distress. Left alone they may lead to a solvency problem, the consequences of which could be serious, such as receivership or liquidations and/or claims against the directors personally. Recognising these signs and taking action early could give your business more options of rehabilitation.

Whether you have just hit troubled waters or are facing insolvency, our team will work with you to determine the right solution for your business, and will then quickly and thoroughly complete it to ensure the best result possible for you. In both trading and investigation environments, we use one of the following solutions to get you the right result the first time:

  • Creditor’s compromise – An arrangement with creditors to pay less/and or at later date
  • Voluntary administration – Statutory protection from legal actions and creditors until a best way forward is determined
  • Receiverships – A receiver applies the security over company’s assets for the purpose of securing or selling assets
  • Liquidations – Either a creditor applies through the court or shareholders themselves decide to bring the company to an end

Talk to one of our team about how we can help you choose the right solution.

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