Kestrel House, Knightrider Street, Maidstone, Kent ME15 6LU, UK
01622 804 863
Opus Restructuring & Insolvency
Sometimes the financial situation for a business or an individual is so critical that the only way forward is the use of one of the formal insolvency procedures in order to bring closure or facilitate a restructuring to put the business or the individual back on a sound financial footing.
Opus can provide advice on all of the UK insolvency procedures and as the Partners are all licensed insolvency practitioners they act as office holder where this is appropriate. Initial consultations are confidential, provided free of charge and without obligation. Fees are based on time or a fixed fee set at the outset of the process and in some instances on a success basis.
An Independent Business Review (IBR) - is often the first step when a company is showing signs of distress. Usually a secured lender or funder that will instigate this however Management may also do so looking to assess the financial health or operational capabilities of their company.
Administration is designed to deal with situations when there is an urgent need to protect the value of a business from enforcement action by unpaid creditors or where a viable business needs breathing space to regroup and implement a survival strategy. Administration is a formal insolvency process, which puts an immediate ring fence around the company and its assets so that no creditor can start or continue action to recover their debts. If your company is in debt and being pressurised by creditors, who are threatening legal proceedings or in the worst case scenario have issued a winding up petition and then seeking the protection of Administration may be the best option.
A charge holder with a floating charge can appoint an Administrative Receiver if they hold security that pre-dates the Enterprise Act. Preventing your company from being forced into Receivership depends on how quickly you engage with the charge holder. Alternatively you maybe the holder of a charge that entitles you to appoint Receivers. Administrative Receivership is an insolvency process initiated by a secured creditor with the benefit of a floating charge, usually a bank or a financial institution, where there has been a breach of the facility that has not been remedied by the borrower. Administrative Receivers are appointed to sell the business and assets of the company in order to repay the sums owed to the secured creditor. It is a procedure used increasingly less often because the security under which receivers are appointed must have been dated before 15 September 2003.
When a company can no longer pay its debts as they are demanded, its directors are under an obligation to take all possible steps to minimise the losses suffered by its creditors. After seeking the appropriate advice, when the owners or Directors want to close down an insolvent company, the procedure is known as a Creditors’ Voluntary Liquidation or CVL. We offer an initial free consultation to review the situation and make recommendations on the best way forward.
A CVA is a legally binding agreement with the company's creditors. It allows for the company to carry on trading and for the company directors to remain in control in consideration of agreeing to the repayment over time of an agreed proportion of the debts. A Company Voluntary Arrangement (CVA) is a form of company insolvency. It is a process which formalises a deal negotiated with a company’s creditors into a legally enforceable agreement. It must be approved by a majority of creditors greater than 75% of those voting on the deal. Once a CVA has been approved, it becomes legally binding on all creditors, including the minority who may have voted against it as well as those who did not vote one way or the other.
Creditors can petition the Court for a company to be put into Compulsory Liquidation if they have exhausted all avenues to recover monies owed to them. The threat of Compulsory Liquidation should never be a surprise for a company. It is the final stage in long process of a creditor trying to recover money it is owed. Except in those cases where it is being used as a nuclear option to settle an unresolved dispute over a debt, it is the inevitable conclusion of a company being unable to pay its debts as they are demanded for payment and therefore becoming technically insolvent. If full payment is not made or a settlement cannot be reached, the company will eventually be forced into Compulsory Liquidation.
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