News May 2008
8th May 2008:
In the first of our new detailed case studies we have published a case study that demonstrates the enormous power of the CompanyRescue CVA approach when used creatively. See here for more details.
2nd May 2008
CVA Moratorium - How does this work? Our new guide to the question of protecting the company with an informal or formal moratorium. (Technical guide).
New April 2008.
NEW!! Is your company an Estate Agent, internet designer, recruitment, service or B2B business based in London? Want out? Call Keith Steven now on 07974 086779, KSA Structured Capital may buy your business immediately with no warranties or guarantees from you!
NEW February 2008
KSA CompanyRescue is pleased to announce the opening of our unique online shop! Need a time to pay deal with HMRC? Need to dissolve your unwanted company? Want a daily cashflow model to control your cashflow? Why not visit our shop?
AMAZING new step by step Dissolution Programme launched today! 4th January 2008
Do you have a company that is dormant, has no assets and no future? Want to get rid of the reporting problems?
Why not dissolve it using our UNIQUE Dissolution Programme?
Step by step expert guide to protect you as a director. our programme helps you with the necessary timetable, file index, flowchart, 4 board resolutions, all the letters templates you need!!! All for a fantastically low price. Click here to learn more.
Will there be a recession? This seems to be the main question in the business press this week. Banks are tightening credit to each other, so it may follow that they will tighten lending to consumers and SME business. Will your business see tougher conditions? If you feel that the business environment is getting worse, take action. Set out a plan to deal with any crisis. This only needs to be a single page kept in your PC.
Are you happy with your debtor management? Who is in charge of cash collection? Are they chasing payments as hard as possible???
Use our new Cost Cutting Guide see below if you need to conserve cash.
Market hard to your customers: have you got a customer database? When was the last time you emailed them, wrote to them called them? Find out what they are planning for this coming year. Do they know all about your products, services and plans? This way you will get feedback, understanding and support for your plans. If key customers are saying we plan to grow - great. If your customers are planning to draw their horns in, then plan accordingly.
How your company may end up in a cashflow crisis. How to deal with the pressure.
Free quality advice on cost cutting, rescue and reorganisation. We get paid £000's for this advice. FREE for you to use.
Many people say to us "we have lots of problems and so we have talked to an insolvency practitioner (IP) and he has stated we must go down the Admin path or we face huge risks". Often this is simply bullying you into a very expensive process that makes them lot of fees!
Our new guide gives you the ability to compare the pros and cons of CVA versus Administration
Click here
There is a unique solution for your problem and you have found it…… this could buy you the time you need.
Click here to access our UNIQUE professional Time to Pay Programme. All you need to obtain a payment arrangement with HM Revenue & Customs. Put our years of turnaround experience to work for your business. Comprehensive and VERY affordable programme.
We have revised and updated our guide to acquiring an insolvent company from the administrator
We are asked every week about how to go about buying one company or another out of a liquidation, administration or receivership. The truth often is that these people haven’t thought much about the difficulties, they just get excited and emotionally attached to the notion of getting a bargain!
Nice if it happens, but in my experience trouble free acquisitions of insolvent companies are seldom bargains.
So read this guide and set out a plan!
We have renewed the creditors voluntary liquidation FAQ’s.
These frequently asked questions and their answers will give more detailed background to the Creditors Voluntary Liquidation (CVL) option. Here is an example FAQ/Answer. For more click the link CVL FAQ’s
Q: Why not just pay the employee and then liquidate the company?
A: What appears to be a noble gesture by the employer can in fact be an illegal step. Under the rules of preference (s239 Insolvency Act 1986) such a payment may put the employees in a better position than they would have been and, if it can be proved that there was a desire to make them better off, this could be a "preference".
If this is proven they may have to pay this back to the liquidator! So no, the best method is to use the safety net described above.
Of course, even if after reading our FAQ's, you have a specific question on liquidation please do contact us on 01289 309431.
Despite rescue attempts and staff working for 6 weeks unpaid the board of Kwik Save had to admit defeat and place Kwik Save into administration today. We understand that an administration pre-packaged sale to a new company will result in a number of stores trading under the Fresh Express title. Most staff will be made redundant.
What is a pre-pack administration for Kwik Save mean? (Click the link for quick flowchart guide to pre pack administration.).
What does it mean does this mean for suppliers and staff? Well generally it will mean no payment for suppliers who have extended credit, most will see no dividend from the process either.
For staff; the lucky few will be kept in employment by Fresh Express but the rest will have to claim from the government (was the DTI) for arrears of pay, redundancy and lieu of notice claims. See a guide for redundant employees here.
If you are an employee we would like to hear from you, please email keiths@companyrescue.co.uk
Yet another rise to curb inflation, but its likely that people will cut back spending soon. Remember that it takes up to 18 months for interest rates rise to affect the economy. We have had 5 increases in a year or so, therefore we expect that the consumer economy will slow and this could mean things WILL slow down for your business if it is related to that side of the economy.
So will it mean lower sales for your company? If so plan to deal with it now. Look at costs and overheads carefully, plan for a downturn. If you don't experience that then you will have tighter control over your business anyway.
What if my company is already distressed or is facing creditor pressure ? Please call us now for a confidential chat.
The topics today are P11D / Class 1A National Insurance and Director’s overdrawn current accounts.
“Yeh right great topics and so interesting”!!!! I would agree except that these are areas that can lead to a lot of pressure from the HMRC on your company
By 6th July 2007 you must file this and pay over the tax that has been calculated. By the way, the Revenue is tough on this process as they see benefits in kind as directors “dodging tax and PAYE”.
Nothing could be further from the truth now could it?
If you have not filed the P11D (effectively tax on directors Benefits in Kind) report on time then you will get a letter and a call from the national debt collection team. They will demand to know why the form has not been filed and or the “tax” not paid.
Your response will set off a chain reaction, if the response is “err have not got round to that yet”, then they will not be too pleased. You could face action for recovery, a County Court Summons and or a visit from HMRC agent or bailiff.
All of these are serious for any company. If you have a cashflow problem then it could be very serious indeed as such actions can tip the company into insolvency
Make sure that you complete the P11D and FILE IT EVEN IF YOU CANNOT PAY THE TAX! This action will demonstrate that you are complying with the rules but have a cashflow problem.
Then you need to call/write asking for a deal to pay the tax over time; see Time to Pay, trading out or consider a CVA to rescue your company if the cashflow crisis is growing?
If in any doubt call us or email now for help.
Do you or any director have an overdrawn directors' loan or current account? Or will your accounts show a problem when they are completed?
Have you been taking dividends out of the company or “drawings”? If so and the company is now loss-making then you could face serious problems and even more tax in due course.
Of course your accountant told you to take dividends and this will save tax. Right advice when profitable, bad advice when loss making or no reserves.
Want to know more about this topic? Please click here to visit our new Directors overdrawn current account Guide.
Company Voluntary Arrangements in the news!
CVA for Leeds United accepted by 75.2% of the creditors 4th June 2007.
After entering Administration in May and seeing the club relegated to the third tier of English football, Leeds United proposed a CVA to its creditors. After a stormy meeting and a recount the vote was approved on Monday 4th June.
So what is a CVA?
It is a deal between an insolvent company and its creditors; this legally binding contract allows the company to repay some or all of its historic debts from future profits over a period of time or from a one-off payment.
CVA’s have been around since 1986 but get little publicity.
“This is a great shame said Keith Steven of KSA; “CVA’s are hugely powerful and ensure that the business can continue whilst restructuring its debts. Without the CVA the Leeds United Company would have folded”
“Most CVA’s offer a 5 year deal to pay back a dividend to unsecured creditors, if that would help your company please get in touch with us on 0800 9700539 to discuss how a CVA can save your company, without relegation to division 1!”
Keith Steven is MD of CompanyRescue and KSA. 5th June 2007
Powerhouse CVA and the landlords; CVA, parental guarantee and privity of contract decision.
Some of you may know that company voluntary arrangements (CVA) can be used (either post administration or stand alone) to terminate unwanted contracts and property leases.
In a recent Court of Appeal case called Powerhouse, the failed retail group had been bought out by Pacific Retail Group.
Obviously the landlords were concerned about the strength of covenant of the new retailer and a number had obtained parental guarantees from Pacific Retail Group (PRG), in the event that the company could not meet the lease commitments.
Powerhouse then entered a CVA and sought to exit a number of leases that were no longer viable. It also tried to claim that the CVA "undid" the parental guarantees. The landlords sought to rely upon Privity of Contract and “went after” the PRG guarantees. Last week they won their case. PRG were not given leave to appeal.
So the PRG case adds a little more clarification of the use of CVA’s and the landlord /tenant relationship. It does not however change the fact that CVA is one of the most powerful ways of terminating an insolvent company’s leases.
In my view this approach was never likely to be a wise strategy in a CVA anyway. Surely the contractual obligations of a third party with a landlord cannot be terminated by a CVA; however as they say “God loves a trier”!
If you have a retail client or any other client with badly performing shops or unwanted property call us on 01289 309431.
8th May 2007
Well the whole design of the website changed on 1st May 2007! After some 3 months of planning and building it’s all new!
We have added faster loading, QUICK GUIDES, easier 2 click navigation around the site, and more flowcharts.
Its grown fat too, the old girl! We now have 5 new sections and over 30 new pages. Our aim is to increase our information each week and to bring more technical content to those that want it.
Over the next few weeks we will add over 30 new case studies to show you HOW we do what we do, every day. This may help you understand some of the guides a bit more clearly.
These case studies are all based on real life businesses – as well as doing lots of whizzy computer website stuff we actually do insolvency and turnaround work everyday!
Finally we welcome feedback and suggestions for improvement – please email us at info@ksacompanyrescue.com
Want to link to new CompanyRescue? Call now 01289 309431 or email us.