Dealing with Business Debt
Sometimes businesses are unable to pay all of their debts when they fall due, and they need a little breathing space from creditors. They are fundamentally viable businesses but cannot cope with the burden of debt or the timescale for payment.
Our experienced team of insolvency experts have successfully helped many struggling businesses to decide the best option available to them and if appropriate to enter into a company voluntary arrangement.
This procedure allows a limited company to negotiate an arrangement with its creditors by which the creditors agree to the repayment of the debt or a reduced amount of the debt over a period of between one and five years. Three quarters in value of the creditors voting must vote in favour of the arrangement if it is to be accepted.
When the proposal takes effect it binds all creditors who had notice and were entitled to vote at the creditors’ meeting.
It enables the possible survival of the company as a going concern, jobs to be saved, creditors to receive payment and the management of the business to be left in control of the directors or owners.
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