Is there a culture of company rescue in Northern Ireland?
When a business gets into trouble in Northern Ireland there appears to be 3 options; Liquidation, Administration, or simply try and trade through the trouble and hope to come to some sort of informal arrangement with your creditors. They haven't really heard of a company voluntary arrangement or CVA, hence out of the 111 company insolvencies in the latest insolvency figures, only 5 CVAs were used.
However, we have had more calls from Northern Ireland companies seeking help recently than we can ever remember. In fact, we are currently working on one which we hope to rescue via a CVA.
So what is different about Northern Ireland?
The insolvency rules in Northern Ireland are in effect a mirror image of the insolvency rules in England and Wales that are governed by the Insolvency Act 1986. The same applies to Scotland however there are subtle differences in court procedures that make the ability to rescue a business in Scotland harder. See our page on Scotland to read up on it.
However, there are no such differences in Northern Ireland. As such, we can help. Our regional manager, Derek Robinson, can assist businesses in Northern Ireland and will come and meet the directors of any business that is in financial difficulty. You can call him on 0771 476 5578. or send him an email firstname.lastname@example.org
So what can we do to help a business in difficulty?
We can liaise with HMRC and try to negotiate a time to pay arrangement of any tax debts. We speak to HMRC almost every day so they know we know what we are doing.
We can help implement turnaround strategies such as cost cutting, marketing, Non exec directorships, interim managers to name a few.
If the company is insolvent (check to see if your business is insolvent here), then we can propose a company voluntary arrangement that allows the business to write off up to 70% of its debts and pay the remainder over a 3-5 year period. If you want to see how this works then read our detailed CVA page.
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.