What Is A Winding Up Petition By HMRC or Other Creditor
What Is A Winding Up Petition By HMRC or Other CreditorLicensed Insolvency Practitioners With National Coverage
Our client approached us through the internet site www.companyrescue.co.uk having read our free 80 page experts guide to company voluntary arrangements (you can download that here free of charge).
The company was over staffed, had falling fee income and also had had the SRA (Solicitors Regulation Authority) warn the board that they should seek insolvency advice., if they failed to give an undertaking to get advice from licensed insolvency practitioners, then the SRA may intervene. Intervention is an aggressive process of taking over clients and filed and effectively closing the company down. It is rare but very expensive for the regulator, if however the firm does not comply with the regulator, the intervention process protects clients.
The problems causes were:
We took the board of 14 through the various options such as CVA, trading out, liquidation and administration, this free process allows our prospective client directors to focus on facts and options not on hearsay and bar room advice. We then set out a recovery strategy in writing. There was no fee for the initial report.
The key components of that strategy were:
The CVA was successfully approved and now our client, is now much leaner, fitter and whilst not running is walking again. There was no requirement for SRA intervention and no need for a prepack administration. Although we had a contingency plan ready to go if the CVA looked like failing.
Two properties have been vacated, costs cut, leasing reduced and employee costs are down. The key deal points are:
One of the senior directors of KSA Group was on site 3 days per week in the crisis period, supported by a team of 4 KSA experts in our offices doing deals with 45 creditors. Now the business needs only periodic assistance.
If your client or indeed your own firm is facing structural debt issues, possible SRA intervention and risk of winding up action by creditors like HMRC, then call our helpline now, or call Keith Steven who is an expert in assisting solicitor firms restructure.
We need to stress that SRA is targeting firms in financial stress, don’t wait for the instruction to get advice from experts in turnaround and insolvency!
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