help for a friend
one of my very close friends has just confided in me that her partners business has lost its main account customer and is now in debt to his suppliers to the tune of over 30 k i believe the business is a limited company they own the house jointly she does not work however she owns a flat which is rented out and brings in a small income their outgoings are huge the business has always given them a good living they are currently chasing new business but this wont keep the wolves from the door for long
what options do they have i will be away from my computer for the next couple of hours so i have posted this question in hope that i have added inough information for you to assess their situation he is burying his head and praying things will get better she thinks act now while they may have some options please help
There may be two issues here - firstly a company that may be heading for liquidation if it cannot find an alternative source of work, and secondly personal difficulties if this affects your friend's income.
I would suggest that they contact an insolvency practitioner for advice, who has experience in dealing with both corporate and personal matters.
Choose carefully, as the larger companies may not have the right level of corporate experience to be able to advice appropriately.
Melanie. Could they not simply look into a CVA. I appreciate that the business would still have to be viable and be in a position to create a monthly revenue to pay out the agreed payments to the creditors. This would at least enable them to continue the business.
They could do - but there are very few CVA applications put forward these days, as they do not have a great track record for working out. Often, a better option is for the directors to buy the assets from a liquidator and start again - without the ongoing burdem of old debt - but of course this does have to be strictly above board and carried out at full market value.
If the transaction is effected prior to liquidation yes - but it is more often carried out once the liquidator is in office and therefore in control of the company.
I think the way the country is going at the moment Melanie it you will probably find it will be companies such as yours that will become overworked from both individuals and Businesses. It is all very confusing and you can understand why people will enter into arrangements with these "Rescue" companies who advertise on the Internet as they make it sound so easy and straight forward.
You may be right there - we are certainly busier than we have ever been at the moment - but with a good team of staff and flexible work practices we can cope!
The only thing that I would recommend to anyone in personal or corporate difficulties is to talk to an insolvency practitioner directly. There is no charge for advice - I spend a lot of my time during the day in meetings with clients who are just looking for some steerage - but it will set your mind at rest and perhaps give you some turnaround tips as well.
The most satisfying work that I do is in business turnaround, where you feel that you have really added some true value and is very encouraging to see the company trading onwards by taking our advice.
