Saving The Company

If you believe you can rescue your company, there are various solutions to help you do so. Your choices boil down to putting the company into Adminstration or opting for a Company Voluntary Arrangement.

Administration
One company saving procedure is Administration which acts as a bandage, temporarily holding the business together while business rescue plans are drawn up to solve financial issues and restructure the company.

As soon as you make an application for Administration through the high court, the assets the company has are protected and the company is given immediate protection from all creditors while a plan of action is established and implemented.

Company Voluntary Arrangement
Another way to rescue a company is via a company voluntary arrangement (as opposed to an individual voluntary arrangement) which gives Limited Companies the chance to negotiate with their creditors to pay a reduced amount of their debt back to the creditor during a 1-5 year period, with a final settlement figure agreed.

This solution is far more preferable to insolvency/liquidation, as you can save the jobs of your employees and save your own credit history, as there will be no credit restrictions placed on you. Creditors prefer this option to insolvency, as they receive some of their money back, so it is worth pursuing if your company may survive as a going concern.

As soon as a CVA is agreed all creditors are binded into the agreement. Prior to being agreed creditors will have been notified and given the chance to vote for or against the company voluntary arrangement.

Business failure
Business failure: Business failure: Business failure
Business failure: How to reduce business risk
Business failure: Reasons for business failure
Business failure: Rescue company
Business failure: End company
Business failure: What are a directors responsibilities
Business failure: What happens to your employees?

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