Brexit has brought about huge uncertainty for businesses with owners not knowing what the future holds. This is having a huge impact for companies which should not be ignored.
Has Brexit affected your business? Have customers delayed orders or payment? Have suppliers tightening their credit terms?
If this is the case then why not call us at Insolve Plus on 020 7495 2348 for a free consultation to review the solvency of your business. It could be the call that lifts the stress and worry if your business is struggling during these difficult times. Insolve Plus has helped many UK based Polish Companies who are facing financial difficulty, including those which need restructuring, need additional finance or are facing winding-up petitions from suppliers or HMRC.
The sooner you seek advice the more options that are available to you and we are happy to discuss those options in English or Polish.
What happens when a company goes into liquidation?
Starting a new chapter in life can bring unexpected results. Otherwise
the people who open their own business or expand it by themselves are oriented to the new situation more branches, and more so businessmen who are forced to close the company. If your business heading towards liquidation, you’re probably wondering what exactly is happening in during this process in the UK.
In the UK, a company can be put into liquidation in two ways – voluntarily, as part of a procedure known as Voluntary Liquidation on request creditors (CVL) or imposed in a mandatory manner and obligatorily, by compulsory means liquidation. In the second case, the company creditor must submit an application to your company it was liquidated court. During the process of liquidation of insolvent assets enterprises are sold and the funds obtained are used to repay as much as possible the largest number of creditors.
The steps to be taken will vary depending on the type of liquidation, however each of the processes will be carried out under the supervision of the trustee. Both liquidations include sale of company assets, assets and shares to pay off debts and complete closure of the company.
Voluntary liquidation
This process is less stressful than forced shutdown. Liquidation procedure can be planned in advance to calmly complete all necessary actions. If you can show that voluntary liquidation will provide the best result for creditors of the company and everyone involved, the implementation of this move will be much easier. Besides, after discussing the situation with the trustee, it may turn out that they exist more appropriate solutions than liquidation. For example, they can allow the company to continuing operations or maximizing the amount of debt repayment. Maybe this include, for example, negotiations with creditors and the conclusion of a contract with them for the purpose reduce monthly payments. It will allow you to save the company or on its liquidation without worsening the financial situation. Is it worth starting a voluntary liquidation? The number of enterprises in the United Kingdom that declared insolence increased in 2018 up to more than 16,000. This is the highest level of insolvency since 2014. When level Your company’s debt does not bode its fruitful future, and no procedures administrative and rehabilitation do not allow to reduce the financial arrears, it should be accept the fact that only liquidation is the right course of action. They will check best quick reactions that will avoid further deterioration of the situation. Delay agreement with the trustee may lead to an increase in debt to creditors, which may expose directors to the risk of personal liability for company debts.
Compulsory liquidation
The petitioner does not have to be a creditor – proceedings may be initiated by a shareholder or any other interested party, if there are good reasons for doing so. If your business meets more than one of the following criteria, may be exposed to forced liquidation: there is no way to pay off debts when they become due, total debts and liabilities exceed the value of all assets, the company has arrears in HMRC, trade did not start within a fixed period of time (usually one year) from registration.
If you would like to arrange a free, not obliging consultation then please call 020 7495 2348 and ask for Joanna Titarczuk.
