We are a firm of very worried solicitors. Our legal practice is a company or LLP We are under growing pressure from all sides. How can you help us solve these problems, restructure and survive.
Informal deals and refinancing for LLPsPlan A Informal deal with creditors, coupled with possible refinancing
Using the threat of the insolvency options can be like the proverbial Sword of Damocles , you can wind the company up, possibly go personally bankrupt or enter an IVA but the creditors would undoubtedly see a compromise or even complete discount of their debts if that occurred.
Being prepared to argue with creditors that the informal route means at least some if not all of their debt is recovered and that this approach will allow you to practice in future, is the common sense solution.
KSA Group will always however make sure that the options of company voluntary arrangement and liquidation have been assessed, a statement of affairs prepared and valuations of any properties obtained to counter the why wait for money what if we simply wind the company up ? question. The main thing to remember is we are prepared for their aggressive questioning.
So pointing this out bluntly allows us to prepare a plan for the recovery of the creditors monies over a considerable period of time say 8-12 months. Yes even if HMRC has rejected YOUR suggested time to pay proposals.
We would generally insist on the following work being part of our restructuring brief
Detailed DAILY CASHFLOW we can provide the tools and assess this for the company or LLP. But this MUST be introduced and to help survival you or your admin people must update every day.
- Statement of affairs for the company or LLPs. Probably requires a desk top valuation of any corporate property. KSA will do this confidentially as part of the brief
- Detailed financial forecasts for the partnership business. What if scenario planning ie what if fee income falls, WIP is not all collected for example?
- Negotiations with the creditors (usually HMRC and the bank) in person and where required in writing led by KSAs experienced debt negotiators.
- Possible assessment of your personal property and assess possibility of new debt from property(ies)
This process can be delivered in 1-3 weeks from engagement and is led by very pragmatic experts in this field. Before commencing we will set out the strategy plan in writing. This work is always costed in writing in our unique solutions report which is provided FREE after your first meeting with a KSA Director or Regional Manager.
Our fees usually come from cashflow savings that we can create for you as part of this process.
What now? If your business has cashflow problems you must act or the creditors will, sooner or later act aggressively against you.
Call KSA Group's DEDICATED LAWYERS LINE now on 0845 519 4930
A word of warning. If your company or limited liability partnership has relied upon multiple time to pay deals over recent years with HMRC and these deals have regularly not been adhered to, then this first option may not succeed, but we believe it is still worth trying.
What if Plan A does not work?
Of course, acquisition by another firm is a possibility too. Will this acquiror pick up all of the liabilities of your firm?
Call KSA Group's DEDICATED LAWYERS LINE now on 08455194930