Need help?
| call | 0800 9700539 |
| 01289 309431 | |
| 0131 242 0081 | |
| 020 7877 0050 | |
| Out of hours: 07974 086779 | |
| Or Click Here For Live Help |
I think my Scotland based business is in trouble! What is voluntary liquidation? What are my other options?"
There is only one company driving the rescue culture in Scotland. Welcome to Company Rescue!
Liquidation or administration are not the only options!
Have you considered a CVA or Company Voluntary Arrangement?
In Scotland there are few CVA's proposed and this is, in the most part, because there is a culture in the Scottish insolvency world that you should allow the creditors to take control of the debtor company. There is also a belief that the HMRC will not approve a CVA in Scotland - Not so! We have never had a CVA rejected by HMRC in Scotland. Our ethos is that if a company has a viable future (if its current problems can be solved) then you should do your upmost to keep it trading and pay the creditors over time. This method has in most cases given a better return to creditors and saved more jobs than an administration, or, of course, a liquidation.
The standard approach in Scotland seems to be - if a company is struggling, put in a winding up petition and knock the company over or place it into liquidation yourself. Hence, it is even more important in Scotland to recognize the signs of distress in your company and check to see if your company is insolvent. Have a look at our insolvency test pages.
2011 Insolvency Statistics - Scotland only:
- 1237 Scottish registered companies went into liquidation in 2011. This figure includes; compulsory liquidations and creditors voluntary liquidations. As for administrations there were 236.
- As for CVA only 14, yes you read that correctly, 14 companies were saved by the CVA tool which is a scandalous waste of good businesses. Incidentally the Government also wants more companies to use CVA!
- KSA Group wrote 3 CVA's in Scotland in 2011.
Of course, there are some instances where a Company Voluntary Arrangement would not be appropriate. But we believe that the options should all be fully considered and understood BEFORE making the decision. Too many insolvency advisors push directors towards closure when CVA may work. So always ask;
What about a CVA - would that work?
What is the comparison between CVA and liquidation
What is the comparison between CVA and administration
Please explain why you have chosen one particular solution whilst not considering the others.
There are worries and mistruths about CVAs so if you are told they don't work then read our worries and mistruths page here. We have done over 400 CVA's so we know what we are talking about.
In fact here is a case study to highlight this fact!
Case Study - A KSA group CVA rescues a recruitment business in Scotland
Here are the latest statistics showing a massive increase in Creditors Voluntary Liquidations
Table 4: Company Liquidations and Receiverships
| Financial Year | 2010/11 | 2011/12 | Percentage change 2010/11 Q2 on: | ||||
| Quarter | Q2 | Q3 | Q4 | Q1 | Q2 | 2011/12 Q1 | 2010/11 Q2 |
| Receiverships | 16 | 5 | 13 | 4 | 14 | 250% | -13% |
| Compulsory Liquidations | 147 | 177 | 199 | 251 | 252 | 0% | 71% |
| Creditors' Voluntary Liquidations | 84 | 83 | 82 | 88 | 95 | 8% | 13% |
| Total Corporate Insolvencies | 247 | 265 | 294 | 343 | 361 | 5% | 46% |
| Members' Voluntary Liquidations | 33 | 60 | 56 | 63 | 57 | -10% | 73% |
We can put you in touch with directors of companies who have been in a CVA and tell you all about it if you want.
If you are a solicitor or accountant advising distressed Scottish companies, please make sure they are aware of CVA's! Or if you are a director of a Scottish business please call your only hope of a rescue - KSA Group!
"What if I have a lot of questions specific to my company?"
Our website gives much information in general terms but how it can be applied to your particular situation will mean you will have to get in touch. Please call 0131 242 0081 or 01289 309431.
If you need urgent weekend advice call Keith Steven on 07974 086779 now.
