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Navigating financial distress

Is your business in a bad storm and in need of powerful remedies?

Whether you have just hit troubled waters or are facing insolvency, our team will work with you to determine the right solution for your business.

These are some of the commons signs of financial distress:

  • The recent loss of a major customer
  • An expansion into a new or unknown market
  • Asset sales made to reduce debt
  • Difficulties in servicing debt burdens or sailing close to banking covenants
  • Deterioration in trading results, or overtrading
  • Management team ‘fire fighting’ issues rather than running the business
  • Growth in creditor arrears and no repayment plans
  • Legal letters demanding payment or unreleased cheques in the drawer
  • Unusual movements in other working capital items such as stock and debtors

Left alone they may lead to a solvency problem, the consequences of which could be serious, such as receivership or liquidations and / or claims against the directors personally. It is important to recognise these signs and take action early.

Our team will work with you to determine the right solution for your business, and will then quickly and thoroughly complete it to ensure the best result possible for you. In both trading and investigation environments, we use one of the following solutions to get you the right result the first time:

  • Creditor’s compromise – An arrangement with creditors to pay less/and or at later date
  • Voluntary administration – Statutory protection from legal actions and creditors until a best way forward is determined
  • Receiverships – A receiver applies the security over company’s assets for the purpose of securing or selling assets
  • Liquidations – Either a creditor applies through the court or shareholders themselves decide to bring the company to an end