Limited Companies
Consider Your Options
Understanding your options is the first step towards deciding the right way forward.
Your next steps
Explore the Routes Available
There isn’t a one-size-fits-all solution when a company experiences financial difficulties. Depending on its financial position, circumstances and future prospects, there may be several routes worth exploring.
There are several routes that may be worth considering, including:
- Creditors’ Voluntary Liquidation (CVL) – A formal process for closing an insolvent company.
- Company Voluntary Arrangement (CVA) – An arrangement that may allow a company to repay creditors over an agreed period while continuing to trade.
- Administration – A process that provides protection from creditor action while options for the company or its business are explored.
- Business Restructuring – Exploring ways to improve the company’s financial position and support its future viability.
Every business is different.
Not every route will be suitable for every company. Understanding the options available is an important first step towards making an informed decision.
At Director Support Group, we can help you make sense of the different routes, talk through your circumstances and, where formal insolvency advice is needed, connect you with an appropriately licensed insolvency practitioner.
Options
Formal Insolvency Routes
Creditors’ Voluntary Liquidation (CVL)
A formal process for closing an insolvent company when it is no longer viable to continue trading. A licensed insolvency practitioner is appointed to manage the liquidation.
Company Voluntary Arrangement (CVA)
A formal arrangement that may allow a company to repay creditors over an agreed period while continuing to trade, subject to creditor approval and the company’s ability to meet the proposed payments.
Administration
A formal insolvency process designed to give a company breathing space from creditor action while options are explored to rescue the business, achieve a better outcome for creditors or realise assets.
Business Restructuring
Where a business may have the potential to continue, restructuring can involve reviewing costs, operations, finances and existing commitments to help improve its position and support future viability.
Every company is different, and not every option will be suitable in every situation.