Formal company Rescue

If the company's financial situation has become very critical, and informal rescue is not appropriate, then a formal company rescue procedure is called for.

There has been no better time than now to attempt a formal rescue of your company. The Enterprise Act 2002 brought in a series of rescue mechanisms which are very effective at rescuing companies and setting them on the right track for a profitable and viable future. There are two principal mechanisms - The Company Voluntary Arrangement or CVA, and the Administration procedure.

In the former rescue procedure, the managers and directors remain in charge of the company and a deal is struck with the creditors which is acceptable to both sides. There is loose supervision from an Insolvency Practitioner , who monitors the situation on behalf of the company and who acts as an honest broker.

The second rescue procedure is the Administration Procedure whereby the Insolvency Practitioner takes on a more "hands on" approach, in that he is responsible for running the Company but can delegate this to managers and directors.

In the event that we have to move to a formal rescue regime, we work with a number of specially selected insolvency practitioners, and in particular Hart Shaw LLP, whose business dates back more than 130 years, and which was a founder member of the ICAEW (Institute of Chartered Accountants in England and Wales).

Contact us now to find out how we can help your business!