Posts Tagged ‘Insolvency’
Insolvency Practitioners’ Campaign against Energy Firms and Suppliers is Pointless
Britain’s leading professional association for insolvency and business recovery specialists has launched an astonishing attack on suppliers who raise prices or stop serving companies that have fallen into insolvent administration. According to R3, debt-chasing suppliers such as utility companies are responsible for 14% of liquidations and the rapid increase in pre-pack administrations, in which a…
Read MoreStruggling Business Owners Will Act Swiftly, If They Are Smart
In December, I warned that company insolvencies would soar over the next 12 months. Now, new research suggests that one million businesses are currently facing ‘financial distress’, with 850,000 UK firms currently suffering from decreased profits. Insolvency & Law provide services for companies in trouble, and businesses affected by companies in trouble i.e. creditors.
Read MoreRemedies for Struggling Directors: CVAs and Renegotiating with Creditors
Company directors experiencing financial difficulties often consider terminating agreements and contracts to reduce the burden of their debts. A director in this position must avoid delaying decisions and rectify the situation as soon as possible; otherwise the business will experience a rapid decline in trade and become insolvent. Reducing staff and rented equipment will lower costs,…
Read MoreWhat’s More Important: Managing Debt or Bad Practice?
Last year, I advised a company that went bust owing £100,000. The Insolvency Service sought to have the company’s director disqualified, but he couldn’t understand why as his liabilities dwarfed the sums owed by other companies. I explained that he faced prosecution because of his conduct rather than the size of his debt. You may…
Read MoreCreditors Voluntary Liquidations Will Be Popular in 2011
Thousands of struggling company owners will voluntarily close their businesses this year, and most of those that do will use a Creditors Voluntary Liquidation (CVL) process. A CVL is perhaps more popular than a Compulsory Liquidation as it allows directors to put a company into liquidation with their shareholders’ approval and permission from creditors. If…
Read MoreAlways Read the Small Print of Finance Agreements – the Devil’s in the Detail
Over the past year, Yorkshire businessman Keith Elliot has launched a campaign to highlight what he claims are unscrupulous banking practices. A few years back, Elliot’s car business, Premier Motor Auctions, ran into trouble so he arranged a pre-packaged deal with accountants PwC for his bank, Lloyds TSB, to purchase a 15 per cent stake…
Read MoreNew HMRC Scheme Punishes Small Businesses Owners
Up to two million small and medium sized business that fail to keep up-to-date records and are likely to pay taxes late face fines of up to £3,000, under a new scheme to be launched by HM Revenue and Customs (HMRC) this year. HMRC’s consultation plan, Business Records Checks, runs until 28 February 2011 and…
Read MoreCorporate Insolvency to Rise in 2011, Despite Xmas Boost
Research carried out by insolvency trade body R3 has found that nearly 50 per cent of UK businesses are currently experiencing falling profits. The new ‘Business Distress Index’ found that 750,000 businesses had seen a reduction in their sales volumes and 32 per cent had experienced a recent fall in market share. Last year, a…
Read MoreInsolvency Fees and Charges: Honda Dispute Highlights Need for Reform
A recent court ruling into the conduct of administrators at BDO and PKF highlights the need for an independent review into insolvency practitioners (IPs) and their regulations – something I’ve been blogging about for many months. The dispute centred on Formula One team Super Aguri whose directors appointed three joint administrators from PKF following the…
Read MoreIf Your Business is in Debt, a Winding Up Petition Could Follow Sooner than You Think
Around one in five businesses in the UK are worried about the amount of debt they currently owe creditors. Whilst most debts accrued by small businesses are owed to HMRC, owners are in fact more concerned about trade debts. Businesses deal with these types of debts on a daily basis, and so they can seem…
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