Corporate Rescue
Recovery & Insolvency
Neuffer Consulting Group
Corporate Rescue
Recovery & Insolvency
Neuffer always take pride in offering an empathetic approach and offering the most practical solutions to all businesses. We are able to assist directors and shareholders in the rescue and restructure of their businesses. A solvent business can benefit from restructuring as it can help to streamline the business processes. Restructuring can also rescue businesses with financial difficulties and avoid formal insolvency procedures.
We are solutions driven:
Obviously, if a company is in the early stages of a financial crisis, more options are available and the business will have a better chance of surviving – prevention is much better than cure.
We offer solutions where a business is:
- Experiencing cash flow problems
- Seeking to reduce overheads
- Making losses
- Reaching an insolvent position
- On the brink of failure
Neuffer acknowledges that in this stressful situation getting the right advice and therefore making the right decisions are paramount. A handful of procedures are available to insolvent companies.
A Recovery Plan
Undoubtedly, the best tool to trade out of insolvency, but only if cash-flow problems are genuinely temporary.
This informal procedure involves employing us to provide specialist recovery services. The company acts as ‘mediator’ assisting in the formulation of a recovery plan and overseeing its implementation.
The use of a third party company helps to provide specialist and expert advice as well as transparency to creditors, shareholders and employees alike.
CVA - Company Voluntary Arrangement
A Company Voluntary Arrangement is a legal process through which an insolvent company may negotiate in effect a payment plan with its creditors.
The creditors are dealt with as a whole and the arrangements usually both reduce the debt and spread the payments over usually between 12 and 60 months.
A company must produce a plan involving realistic cash flow and showing evidence of future viability to both maintain the monthly payments of the CVA and not worsen the position of its creditors moving forward.
Administration - an insolvency process
Administration is an insolvency process introduced following the Enterprise Act in 2000.
The procedure can be used to allow a viable business to explore its options and if necessary move the viable elements of the business out and into a new company or negotiate a deal with the creditors. The process is specialist and rightly follows a rigid procedure involving valuations and court applications.
A company may also trade whilst under the legal protection of an Administration Order where otherwise cash flow difficulties would dictate it cease trading. The Administration can often allow a company in difficulty to complete contracts, orders, etc. for the benefit of both the company and its creditors.
Please contact us in confidence now to establish if such an arrangement would be suitable for your business.
CVL - Creditors Voluntary Liquidation Save & Exit
This is a formal insolvency process whereby an insolvent limited company ceases to trade and terminates at the instruction of its directors. The procedure is often the simplest and most cost efficient way of ceasing without losing total control to a creditor. The business may still be rescued and subject to legal formalities transferred in part or whole to a new company.
Please contact us in confidence now to establish if such an arrangement would be suitable for your business.
Compulsory Liquidation - is initiated by a creditor
Compulsory liquidation is initiated by a creditor, or government agency such as HM Revenue and Customs, who can demonstrate that all reasonable steps to recover an undisputed debt have failed (e.g. debt collector). A winding up petition is served and a liquidator is appointed by the courts.
Either the official receiver or an insolvency practitioner will be appointed to act as liquidator.
Even if the debt is paid at this stage the wind-up hearing will go ahead with attendant risk to the reputation of directors.
MVL Members Voluntary Liquidation
This form of liquidation provides for all creditors to be paid in full and allows for a distribution to shareholders. It is a wonderful tool which can be used when directors are seeking retirement and there is no succession or where a group of companies need reorganising.
Please contact us in confidence now to establish if such an arrangement would be suitable for your business.