Frequently Asked Questions
Is what you do legal?
Absolutely. Malcolm has worked for many years in the accountancy industry and is a member of the Chartered Institute of Credit Management. In addition, he is a well-known, well-respected local businessman. If this process were not legal, he would not be involved with it.
So, what do liquidators do?
Liquidators are appointed either by the company directors or the court. Their purpose is to take control of an insolvent business, dispose of the company’s assets, distribute the proceeds to its creditors and close down the business. They also investigate why the company had become insolvent.
Why is your process better than liquidation?
Depending on a company’s circumstances, it may be that liquidation is still the best option. However, liquidators are there for the benefit of the creditors and to close the business, not for the benefit of the directors or owners.
We are here to support owners and directors find a way to move their business forward. We might not be able to help in every case, but there is absolutely nothing to be lost by contacting us.
What's the difference between insolvency and liquidation?
Put simply, insolvency is the financial state in which a business can’t pay it’s debts, or its liabilities outweigh its assets. This is different from liquidation which is a legal process in which a company’s assets are distributed to its creditors and the company is closed.
How does your process fit in with the March 2020 Corporate Insolvency and Governance Bill?
The purpose of the Bill is to give companies the breathing space to maximise their chance of survival. Parts of insolvency law have been temporarily suspended allowing directors to continue without the threat of personal liability for wrongful trading when insolvent and to protect them from creditor action such as wind-up orders.
Where do I stand regarding TUPE regulations?
TUPE regulations protect employees if the business they work for is changing hands. In this case the regulations are not relevant because a business is not changing hands.
How can I continue trading if my company is insolvent?
Our company lifeboat scheme means that you would not be trading from an insolvent company.
How do you make your money in this process?
We don’t charge fees and we don’t charge interest. We make money through the company refinancing, the assets, and the creditors. Obviously we are more than happy to discuss this in more detail when you contact us.