Pre-Pack Administration #024

Published on 31 December 2010 by Tony Groom  Pre-pack Administration is a tool for saving struggling businesses that are in severe financial difficulties but are potentially sound. Essentially it means “selling” the business to a new company immediately upon appointment of an Administrator, the preparation for sale being carried out prior to appointment. The sale requires […]

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Insolvent Liquidation and When and How it is Used #020

Published on 17 December 2010 by Tony Groom Insolvent Liquidation involves a formal process to close a company. It happens when a company is insolvent, which means it does not have enough cash or liquid assets to pay its debts and the directors have concluded that continuing to trade will be detrimental to creditors. There are […]

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A Guide to Company Voluntary Arrangements (CVA) and When to Use Them #022

Published on 24 November 2011 by Tony Groom A Company Voluntary Arrangement (CVA) is a binding agreement between a company and those to whom it owes money (creditors). A CVA is based on a proposal that will include repayment terms. These should be affordable, realistic and manageable. While the proposed payment period can be much shorter, […]

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A Frozen Bank Account Need Not be the End of a Business #014

Published on 26 November 2010 by Tony Groom If a bank takes action to freeze a company’s bank account it is an indication that the bank is nervous and under its bank facility terms and conditions has exercised its right to not release funds. A bank’s behaviour is monitored by its facility people and triggering […]

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Managing Tax Payments With Time To Pay Arrangements #004

Published on 22 October 2010 by Tony Groom There are hundreds of thousands of businesses struggling to meet their financial obligations to the Exchequer. Businesses, especially smaller enterprises, have been reporting that in the current difficult economic climate they are struggling with cash flow issues as customers and suppliers try to stretch out the time […]

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Dealing With VAT Arrears and PAYE Arrears #002

Published on 15 October 2010 by Tony Groom Owing Her Majesty’s Revenue & Customs (HMRC) more than £150,000 for overdue VAT and PAYE when your turnover is less than £3 million is not uncommon in 2010. A second, more extreme example of HMRC arrears was a labour services company that owed more than £100,000 having […]

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