Save your business with voluntary administration
The primary purpose of voluntary administrations is to give insolvent companies a legal process so they can continue in existence. It’s an alternative to the liquidation of the company.
Signs that your company have a solvency problem include:
The first reaction to business trouble is often to ignore it. Avoiding calls from your creditors or injecting your own money into a failing business is not the best long-term solution. There are a number of restructuring options, such as voluntary administration that may enable the business to survive and avoid liquidation. The directors of a company can appoint an independent administrator who will suggest a recovery plan for creditors to consider.
Choosing voluntary administration provides the following benefits:
A voluntary administration usually goes for 30-40 days.
If your company trades while insolvent, as a director you can be held personally responsible for the business's liabilities. Taking a proactive approach, such as voluntary administration or liquidation, lowers the likelihood of legal action being brought against you for a breach of your duties as a director.
A creditor compromise often allows a company to cover short term debt with long term debt, providing a cash flow improvement. It requires creditor approval and our specialist team can guide you through this process.
For more information, contact one of our experts now.
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