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!
If you run an insolvent or struggling Scottish company the chance of rescue is low. Less than 1% of insolvent companies are rescued by a company voluntary arrangement (CVA) each year, compared to England and Wales, where proportionally, the CVA tool is used 4 times as often.
In Q2 2019 there were 252 total corporate insolvencies in Scotland. This is an increase of 8.6% on the same quarter in 2018. You can view the full data publication here.
The most used insolvency mechanism was a compulsory liquidation (139), followed by CVLs (92), 18 administrations, 2 recieverships and shockingly just 1 CVA.
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...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 CVA's.
Here are some case studies that show our previous success -
Any views on these statistics would be welcomed. If you are a solicitor or accountant advising distressed Scottish companies, please make sure they are aware of CVAs! Or if you are a director of a Scottish business please call for probably your only hope of a rescue - KSA Group!
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!
What do our Scottish clients say?
"Honest, frank and the RIGHT advice. KSA Group helped us turnaround our company against the odds."
"We were told several times by other insolvency practitioners to close down and start again, we didn't like that advice and were glad to find KSA. Tough choices had to be made but we survived and are now out of the CVA early."
"Keith, I am happy to give references and advice to any Scottish MD looking at the CVA option. Please pass them my mobile number; PD"
"Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.
The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.
Please pass on my sincere thanks to everyone at KSA.
Kind regards "
Case study - Scottish CVA approved
"OK, what if I have a lot of questions specific to my company"? Our website guide can only be general and non specific, so once you have visited our site, if you want specific and high quality advice call 08009700539 or 0131 242 0081. We have fully trained advisors ready to talk to you between 8am and 6pm every weekday.
If you need urgent weekend advice call Keith Steven on 07833 240747 now.
We have company rescue clients all over Scotland; Many of these directors will be happy to give references upon request from KSA. So talk to us today and we can start solving those cash flow problems now.
Worried about poor cashflow? How to win new work? 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 written pre Covid-19 and there are some likely changes to insolvency rules regarding wrongful trading. Please see this page here.