Company insolvency in Scotland

Written by Keith Steven Managing Director 17 June 2020

Company insolvency in Scotland

Is there a genuine company rescue culture in Scotland?

There is only one company driving the rescue culture in Scotland, and you have found it!

I am Keith Steven. Our firm KSA Group, who run this website, are responsible for a significant proportion of CVA led rescue work in Scotland.

If you run an insolvent or struggling Scottish company the chance of rescue is low. Amazingly, less than 1% of insolvent companies are rescued by a company voluntary arrangement or CVA each year!  This is compared to England and Wales, where proportionally, the CVA is used 4 times as often.

Here are statistics from the last quarter of 2019  that show the "rescue culture" still has a long way to go.  Due to Covid-19 the 1st quarter of 2020 has been delayed.
 

Scottish Insolvency Statistics for Q4 2019

So always ask your advisors these questions -  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 many myths and misconceptions about CVAs. So if you have been told they don't work then read our worries and mistruths page here to see if this is the case. We have done over 500 CVAs so we are speaking from experience and we know what we are talking about.

The standard approach in Scotland seems to be - if a company is struggling, whack in a winding-up petition and knock the company over or place it into liquidation yourself.

Almost all insolvency practitioners in Scotland will tell you that HMRC WON'T SUPPORT A CVA!

Interestingly, HMRC in Scotland are very supportive of rescues, and would much rather see the company survive in CVA than be liquidated and start again. We have never had a CVA rejected by HMRC in Scotland. We have a good working relationship with HMRC in Scotland and with the Voluntary Arrangement Service in England who are currently dealing with all Scottish CVAs.

Whether you are dealing with a CVA (company voluntary arrangement), creditors voluntary liquidation, Phoenix, administration or pre-pack administration sale we can help you find the RIGHT SOLUTION!

If your business is unsalvageable, then there is still the option to liquidate - we can help assist with this. Call us on 08009700539 or 0131 242 0081. We have fully trained advisors ready to talk to you between 8 am and 6 pm every weekday. 

Our regional manager for Scotland and Northern Ireland, Derek Robinson, will be able to visit you at short notice and go through all the options.  Please call our Edinburgh number on  0131 242 0081.

A Worried Director

The Ultimate Guide For Worried Directors

Worried about poor cashflow? Covid-19?, How to pay wages on pay day? For expert advice on a range of issues download our free Ultimate Guide For Worried Directors today. Or just call us on 0800 9700539

Please note that the guide was mostly written pre Covid-19 and there have been some changes to insolvency legislation that limits creditors actions and relaxes rules regarding wrongful trading.  A new 20 day moratorium for distressed businesses has also been introduced. 

"KSA Group which owns this site, will help you fix problems in your business. We won't charge for any initial advice or face to face meetings. We speak in English. We will save you money and your precious time.  You can come to any of our offices

"We also follow up any meeting with a full "solutions report" which runs on average to 30 pages valuable free advice!!  No other practitioner offers this service.  In this report we advise on ALL the options and explain them clearly.  We advise on a course of action given the information you have given us ( the more information we have the better we can advise!)"

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