Is my company insolvent?
The two tests of insolvency are:
- Are you unable to pay your debts as they fall due?
- Do your liabilities exceed your assets?
If you satisfy either of the above criteria your company is insolvent. The typical, or early signs, of insolvency may include:
- Arrears of PAYE and VAT?
- Bank facilities always fully utilised?
- Trade accounts on hold with suppliers?
- Legal action for overdue payments to suppliers?
Can my company be saved?
The earlier expert advice is sought, the greater the chance that the company can be saved either through:
- A solvent solution such as equity investment, refinance restructure or informal creditor agreement.
- Insolvency solutions such as company voluntary arrangement or administration can be used to save the company, however, if this is not achievable the core viable business activities can be preserved through pre-pack administration or liquidation with a restart.
My company is not viable; can you help me exit with my reputation intact?
Some businesses we provide solutions for don’t need, or want to be rescued. This may be due to personal reasons or market changes/pressures. Depending on the situation different solutions may be appropriate: