advice, assistance and support
We offer advice, assistance and support for Directors, Business Owners and Companies that are facing financial challenges. These challenges may be caused by a variety of things but typically they might be bad debts, contractual liabilities, the loss of key customers, tax liabilities and more all of which impact cash flow and endanger your livelihood.
Poppleton and Appleby are Licensed Insolvency Practitioners and Business Recovery specialists. We aren’t accountants, bookkeepers or tax advisors and we don’t offer advice on what we aren’t equipped to deal with. This means that we are focused on what we can do to help.
If the advice you require isn’t our specialism, we will help you find the advice you do need from a relevant specialist that shares our values.
We offer a rapid response by qualified experts with over 100 years’ combined experience providing incisive advice tailored to meet the specific needs of the client and will help you to deal with the root of the problem and stop wasting time on the symptoms.
This is the most common form of Director-led insolvency procedure. Directors recognising that their company is insolvent and needs to close, use this process to convene meetings of shareholders and creditors to appoint a Licensed Insolvency Practitioner as liquidator to wind up the affairs of the company. It can also be used for Limited Liability Partnerships and other organisations such as Charities and associations that may be Limited by Guarantee.
Administration is an alternative procedure to Liquidation. A Licensed Insolvency Practitioner is appointed as Administrator either by the Directors of the Company, by the holder of a Qualifying Floating Charge (QFC) or (less often) by the Court. There are three tiers of objectives when an Administrator is appointed:
- Rescuing the Company as a going concern, or
- Achieving a better result for creditors than would be likely if the Company were wound up, or
- Realising property in order to make a distribution to one or more Secured or Preferential Creditors
Pre-packaged Administration (“Pre-pack”) is a popular procedure for rescuing a Company’s business, preserving value for the benefit of creditors and often, saving jobs. A Pre-pack usually involves the immediate sale by the Administrator of the insolvent company’s business and assets in a pre-arranged deal; often the purchaser will be a connected party.
This is an alternative procedure for insolvent companies that generally doesn’t involve the closure of the business or loss of control by the Directors. It requires a Licensed Insolvency Practitioner who assists the Directors in writing a Proposal to Unsecured Creditors outlining how the Company will repay its debts. Often the Proposal involves offering Unsecured Creditors only partial debt repayment over a period of years. The Proposal must be approved at a meeting by at least 75% by value of Unsecured Creditors who vote and will then bind all Unsecured Creditors. It is effectively a contractual proposal that has statutory force when approved. After approval of the CVA, the Company remains under the control of the Directors.
A CVA can be a particularly flexible method of business rescue and an excellent way of dealing with the insolvency of a Company caused by historic events that have been overcome and where the underlying business is viable. This is also available to be used by Limited Liability Partnerships (LLP).
This process is typically used by traditional Partnerships that are insolvent but have resolved the cause of the insolvency, have a viable underlying business and want to repay the partnership’s Unsecured Creditors. It may be a means of also avoiding the Bankruptcy of one or more of the Partners. The procedure is very similar to that of a CVA.
This is the procedure for winding-up a solvent Company. It still requires the appointment of a Licensed Insolvency Practitioner as the Liquidator. This is usually used when the Shareholders have ceased to have a use for the company, perhaps when considering Retirement, or when Restructuring a group of companies or for Tax Planning. Members Voluntary Liquidation deals with the end of a Solvent company’s life without leaving anything to chance. Currently, if a Company has over £25,000 of balance sheet asset value at the end of its life, an MVL will be necessary to ensure that it is closed formally and to the satisfaction of HM Revenue & Customs.