Business Recovery and Insolvency
The Hughes Partnership, in conjunction with a Licensed Insolvency Practitioner, offer a full spectrum of rescue and turnaround assignments, on behalf of companies, partnerships and individuals who find the viability of their business in question.
Confronting financial difficulties in any business, and particularly in hard-pressed owner-managed and SME businesses, involves significant management strength and self-awareness. The temptation to neglect or deny the problem is often huge and, if panic sets in, commercial judgement can desert even the most experienced of business professionals.
However, not all distress situations lead to liquidation or the need for formal protection. By identifying trouble and moving quickly to seek assistance, a company or business willing to make changes in the way it operates and enter into informal agreements with its creditors can often avert a crisis and, in many instances, return a company or business to profitability.
The Hughes Partnership have extensive experience working with troubled and under performing companies/businesses. We welcome early, free of charge, exploratory conversations from any owner, director or entrepreneur concerned that their business might be running into troubled waters. We work with sensitivity and professionalism to establish a trusted business environment in which we can deliver the practical support and advice needed.
Informal Agreements
In this situation our partners' work alongside you in the stabilisation and ongoing management of your business, reaching agreements with creditors on scheduling repayment, and helping you to restructure processes with the objective of rescuing the business. In these situations, we are able to provide assistance in raising finance, restructuring management teams, divesting the business of under-performing units and various other strategies necessary for an effective rescue
.Formal Agreements
UK insolvency legislation provides two kinds of 'formal' protection for companies in difficulty:- Company Voluntary Arrangement, (CVA), enables a company to reach a binding arrangement with creditors based on a 75% majority vote of voting creditors. The arrangement is then legally binding on all creditors, regardless of whether or not they voted. This is a highly effective way for a company to negotiate professionally with its creditors without falling victim to the possible short-term agenda of smaller interests.
Administration
Administration provides a rapidly implemented breathing space, by placing the company under the control of a licensed Administrator. Once in Administration the company is protected from adverse actions of creditors while the Insolvency Practitioner works with you and your creditors to formulate acceptable proposals on the future of the business. Once the future direction has been agreed by all parties the Administrator then returns executive control of the business.
Liquidation
There are of course situations in which a company cannot be saved, or in which liquidation offers the most desirable solution all around. Various winding-up procedures exist including Creditors Voluntary Liquidation, Compulsory Liquidation and Members Voluntary Liquidation. In the extreme event of a company finding itself faced by such a challenge the professionalism and empathy of our associates will be there to guide and support throughout.
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Please contact us if you need further advice, have any questions about our services, would like a free consultation or a fixed fee quote.
