Members (Solvent) Voluntary Liquidation

Industry: Property Debts: £N/A
Benefit: Quick turnaround, minimal costs, entrepreneurs relief obtained

Summary: Company with leasehold assets and cash.
All known and agreed creditors were paid prior to liquidation to avoid incurring statutory interest.

Could have used ESC C16, but owner-manager wanted to go through liquidation to ensure liquidator could adjudicate on any previously unknown or disagreed creditor claims and minimise future claims and costs.

Shareholders received funds and assets within 3 months of date of liquidation.


Industry: Construction Debts: £240,000
Benefit: Preserve value and protect director’s livelihood

Summary: Company received a winding up petition from HM Revenue & Customs.

Company’s bank account was frozen. We obtained a validation order to unfreeze the account.

Following this customer payments were not received as expected and the future outlook was poor.

Applied for and obtained an Administration Order to preserve the value in the business and complete existing works. Director’s livelihood was preserved and the return to creditors maximised (including his loan account).

Company Voluntary Arrangement

Industry: Manufacturing Debts: £200k
Benefit: Turnaround achieved

Summary: High growth company had overtraded, costs were not controlled and company’s cashflow suffered.

High street banks and other lenders could not advance more cashflow, HMRC unwilling to accept sensible time to pay arrangement.

We restructured and streamlined the business, concentrated on core strengths and profitability, bought time to pay debts over an extended period.

Instead of borrowing to aid cashflow difficulties a CVA was used as an alternative cashflow management tool.

LLP Liquidation, not Prepack Administration

Industry: Printing Debts: £650,000
Benefit: Process suited to client’s circumstances, not ours

Summary: We advised an LLP on its insolvent position.

With a 30 year history following the acquisition of an existing business, fixed overheads had risen unnoticed and employee costs were significant. A downturn in trade led to rising debts and a necessity to halve the workforce, but this was too costly.

We recommended a liquidation of the LLP, 2 other Insolvency Practitioners recommended a Prepack Administration. This was not in the director’s best interests due to TUPE. Director instructed us, phoenix was profitable and no TUPE claims arose.