CONTINUE
YOUR
TRADING
CONTINUE YOUR TRADING
Protection
Avert Winding Up Petitions
Repel Demands and Distraint
CVA or Successful Relaunch
PROTECTION
Companies are not usually stopped by Losses, but failed Cashflow. Amidst the urgencies of sales and business operations, control of collecting monies due from customers and timely payment of taxes and suppliers can easily slip. That can soon escalate to a cashflow crisis where accelerating payment demands and delayed receipts escalate into insolvency.
To prevent or resolve this, Interco’s Management Consulting arm offers Protective Support. We take charge of the company’s sales and purchase ledger action for a period, work with your creditors and debtors to rectify the position and establish safe onwards cash management approaches for the longer term.
With Covid 19, Protected Support will be especially important – negotiating payment deferrals, resolving disputes and accelerating collections.
AVERT WINDING UP PETITIONS
If you receive a Winding Up Petition, we act immediately to get it withdrawn, or its advertising postponed.
Our Insolvency Solutions team often STOP these actions, negotiate payment, or delay them until you control the outcome by new funding, safe voluntary closure, or relaunching a fresh company.
If the Petition has already been advertised we either overtake the Compulsory Winding Up by an urgent Creditors Voluntary Liquidation, or prepare a Managed Closure Package for the Official Receiver, which exhibits proper past conduct by the Director(s) and can avoid actions against you for personal liability.
Why is action so urgent on receipt of a petition?
Once the Petition is advertised in the “Gazette” with a hearing date, this will freeze the company bank account, prevent any sale of assets and force trading to stop immediately until the date of the hearing. Even if the Petitioner themselves wish to stop this, they cannot. This is because the act of advertising invites all other company creditors to join for the hearing. For special circumstances where it may be possible to apply to Rescind the freezing of your bank account, please call to discuss.
If granted, a Winding Up Order will close the company compulsorily. Control over its affairs passes to the Official Receiver who will investigate Director conduct for potential Disqualification and Personal Liability for the Company Debts and appoint a Liquidator to sell any assets to the benefit of Creditors.
How we avert a Winding Up Order
There are several routes by which we oppose Petitions and persuade the Petitioner to not advertise but pause and negotiate. One is to argue that it is not an undisputed debt and the WUP is not valid. This is important as wrongly issued Petition can give you a claim for damages against the Claimant. Another example is to have them realise that the result may gain them no monies at all – only added legal costs.
If the Petition is already advertised, you can ask us to produce a Closure Package for the official Receiver or we DO still have routes to prevent the actual making of a Winding Up Order. These will vary according to circumstances, such as the position of other Creditors, whether you wish to pay the debt and continue trading, or prefer to effect a voluntary insolvency action such as a CVA or CVL which can be used to vacate the Hearing
Received a Petition? Timing is everything …days or even hours may count…please call NOW.
Click to enlarge
REPEL DEMANDS AND DISTRAINT
RESIST STATUTORY DEMAND
Your Company can be served with a formal Demand for any sum over £750 and you will have only 18 days to pay the amount claimed, negotiate its withdrawal or apply to the High Court for an injunction to restrain the Creditor from serving a Winding Up Petition. Defence must show that the claim is inaccurate, disputed, or not yet due.
We first tackle the Claimants to achieve voluntary withdrawal, otherwise file defence. Creditors are often more willing to negotiate settlement than issue Proceedings. Why? – they face a large costs bill if they lose and, in Liquidation, they cannot know what dividend they will receive.
For immediate defensive action…email us the details.
FRUSTRATE DISTRAINT
We examine best defence before attendance. If not automatic (no assets, vehicles on lease, retention of title), we can effect watertight legal sale of your assets into third party ownership. Either way we pre-notify Creditors and Agents of the inhibitions, so as to avoid attendance and assist negotiated settlement..
To ask us to avert a distraint, please email us the related documents.
CVA, OR SUCCESSFUL RELAUNCH?
COMPANY VOLUNTARY ARRANGEMENT…
A CVA can sometimes offer a positive alternative to Creditors Voluntary Liquidation (CVL). The Director proposes a reduced sum settlement with creditors to cover all past liabilities, A strong upside is to let the Company reduce or defer most debts and continue to trade without interruption. Downsides are delay with proposals that may be rejected, continuing liabilities and having to trade with a high risk Credit Profile.
[+/-]
WHAT'S INVOLVED - WHAT'S FOR DOING IT? - WHAT'S AGAINST? - INTERCO MANAGEMENT?
WHAT’S INVOLVED? – CVA TERMS?
WHAT % OF DEBTS IS PAID?
This is not fixed, but negotiable. It can be different for different classes of Creditor – Staff (100%) – HMRC – Landlord – Trade. Clearly the overall commitment must be one which the forward business forecast shows to be achievable from post-tax profits.
A LUMP SUM SETTLEMENT
Will normally offer Creditors monies not otherwise available to them. This may be a voluntary payment from a third-party on the company’s behalf (the Directors themselves? Friends? a partnering commercial enterprise?). Or it might be a pledge of funds that will only fall due to the company at a future date if it continues to trade.
AN EXTENDED PAYMENT PROPOSAL
Will be supported by an accurate current balance sheet and recent trading performance history and a forward business forecast covering the period over which the Company says it will make payments to its Creditors from operating profits.
A WHAT FEES ARE PAYABLE?
This is not fixed, but negotiable. It can be different for different classes of Creditor – Staff (100%) – HMRC – Landlord – Trade. Clearly the overall commitment must be one which the forward business forecast shows to be achievable from post-tax profits.
TO DO? – CVA UPSIDES?
Five upsides to a CVA rather than a Fresh Start Company
- minimised disruption – customers need not notice the change;
- termination of premises or equipment leases can often be avoided
- requires no report to the insolvency service on Director conduct
- easier to gain continuance with key suppliers who are bound in
- after CVA is completed credit agencies can show CVA debts settled
NOT TO DO? – CVA DOWNSIDES?
Five downsides to a CVA rather than a Fresh Start Company
- hard to make enough post-tax profit to meet CVA payments
- company will be trading with a negative CVA credit profile
- CVA conditions restrict Director’s freedom including to borrow
- staff arrears not met by government – paid as creditors
- creating proposal is difficult and may not be accepted
HOW TO DO? – WE MANAGE THE WHOLE CVA TASK?
Five downsides to a CVA rather than a Fresh Start Company
-
Assess Current Financial Position and Discuss Futures
-
Advise on a Viable Shape of CVA for your Company
-
Defend Short Term against any pressing Creditors(s)
-
Help you create The CVA Proposal and Financial Forecasts
-
Assist as needed to Negotiate Acceptance by Creditors
WHICH IS THE BEST ROUTE FOR YOU?
If you wish to continue your business, shall we use our expertise and experience to negotiate an affordable CVA, or shall we close the Company by a safely managed CVL and transfer your business seamlessly to a debt free NewCo?
…OR SUCCESSFUL RELAUNCH?
If your liabilities are too great to “trade through “, is it best we negotiate an affordable CVA with your Creditors, or to close this Company completely and transfer your business, legally and seamlessly, to a debt free New Company?
- Protection
- Avert Winding Up Petitions
- Repel Demands and Distraint
- CVA or Successful Relaunch?
PROTECTION
Companies are not usually stopped by Losses, but failed Cashflow. Amidst the urgencies of sales and business operations, control of collecting monies due from customers and timely payment of taxes and suppliers can easily slip. That can soon escalate to a cashflow crisis where accelerating payment demands and delayed receipts escalate into insolvency.
To prevent or resolve this, Interco’s Management Consulting arm offers Protected Support. We take charge of the company’s sales and purchase ledger action for a period, work with your creditors and debtors to rectify the position and establish safe onwards cash management approaches for the longer term.
With Covert 19, Planned Protection measures will be specially proactive – negotiating payment deferrals, resolving disputes and accelerating collections.
AVERT WINDING UP PETITIONS
If you receive a Winding Up Petition, we act immediately to get it withdrawn, or its advertising postponed.
Our Insolvency Solutions team often STOP these actions, negotiate payment, or delay them until you control the outcome by new funding, safe voluntary closure, or relaunching a fresh company.
If the Petition has already been advertised we either overtake the Compulsory Winding Up by an urgent Creditors Voluntary Liquidation, or prepare a Managed Closure Package for the Official Receiver, which exhibits proper past conduct by the Director(s) and can avoid actions against you for personal liability.
Why is action so urgent on receipt of a petition?
Once the Petition is advertised in the “Gazette” with a hearing date, this will freeze the company bank account, prevent any sale of assets and force trading to stop immediately until the date of the hearing. Even if the Petitioner themselves wish to stop this, they cannot. This is because the act of advertising invites all other company creditors to join for the hearing. For special circumstances where it may be possible to apply to Rescind the freezing of your bank account, please call to discuss.
If granted, a Winding Up Order will close the company compulsorily. Control over its affairs passes to the Official Receiver who will investigate Director conduct for potential Disqualification and Personal Liability for the Company Debts and appoint a Liquidator to sell any assets to the benefit of Creditors .
How we avert a Winding Up Order
There are several routes by which we oppose Petitions and persuade the Petitioner to not advertise but pause and negotiate. One is to argue that it is not an undisputed debt and the WUP is not valid. This is important as wrongly issued Petition can give you a claim for damages against the Claimant. Another example is to have them realise that the result may gain them no monies at all – only added legal costs.
If the Petition is already advertised, you can ask us to produce a Closure Package for the official Receiver or we DO still have routes to prevent the actual making of a Winding Up Order. These will vary according to circumstances, such as the position of other Creditors, whether you wish to pay the debt and continue trading, or prefer to effect a voluntary insolvency action such as a CVA or CVL which can be used to vacate the Hearing
Received a Petition? Timing is everything …days or even hours may count…please call NOW.
Click to enlarge
REPEL DEMANDS AND DISTRAINT
RESTIST STATUTORY DEMAND
Your Company can be served with a formal Demand for any sum over £750 and you will have only 18 days to pay the amount claimed, negotiate its withdrawal or apply to the High Court for an injunction to restrain the Creditor from serving a Winding Up Petition. Defence must show that the claim is inaccurate, disputed, or not yet due.
We first tackle the Claimants to achieve voluntary withdrawal, otherwise file defence. Creditors are often more willing to negotiate settlement than issue Proceedings. Why? – they face a large costs bill if they lose and, in Liquidation, they cannot know what dividend they will receive.
For immediate defensive action…email us the details.
FRUSTRATE DISTRAINT
We examine best defence before the agents attend. It may be straightforward, (no assets? vehicles on lease? goods have retention of title). Otherwise, we can complete a valid legal sale of your assets into third party ownership. We notify Creditors and Agents of the inhibitions, so as to avoid attendance and assist settlement.
To ask us to avert a distraint, please email us the related documents.
CVA, OR SUCCESSFUL RELAUNCH?
COMPANY VOLUNTARY ARRANGEMENT…
A CVA can sometimes offer a positive alternative to Creditors Voluntary Liquidation (CVL). The Director proposes a reduced sum settlement with creditors to cover all past liabilities, A strong upside is to let the Company reduce or defer most debts and continue to trade without interruption. Downsides are delay with proposals that may be rejected, continuing liabilities and having to trade with a high risk Credit Profile.
[+/-]
WHAT'S INVOLVED? - WHAT'S FOR DOING IT? - WHAT'S AGAINST? - INTERCO MANAGEMENT?
WHAT’S INVOLVED? – CVA TERMS?
WHAT % OF DEBTS IS PAID?
This is not fixed, but negotiable. It can be different for different classes of Creditor – Staff (100%) – HMRC – Landlord – Trade. Clearly the overall commitment must be one which the forward business forecast shows to be achievable from post-tax profits.
A LUMP SUM SETTLEMENT
Will normally offer Creditors monies not otherwise available to them. This may be a voluntary payment from a third-party on the company’s behalf (the Directors themselves? Friends? a partnering commercial enterprise?). Or it might be a pledge of funds that will only fall due to the company at a future date if it continues to trade.
AN EXTENDED PAYMENT PROPOSAL
Will be supported by an accurate current balance sheet and recent trading performance history and a forward business forecast covering the period over which the Company says it will make payments to its Creditors from operating profits.
A WHAT FEES ARE PAYABLE?
This is not fixed, but negotiable. It can be different for different classes of Creditor – Staff (100%) – HMRC – Landlord – Trade. Clearly the overall commitment must be one which the forward business forecast shows to be achievable from post-tax profits.
TO DO? – CVA UPSIDES?
Five upsides to a CVA rather than a Fresh Start Company
- minimised disruption – customers need not notice the change;
- termination of premises or equipment leases can often be avoided
- requires no report to the insolvency service on Director conduct
- easier to gain continuance with key suppliers who are bound in
- after CVA is completed credit agencies can show CVA debts settled
NOT TO DO? – CVA DOWNSIDES?
Five downsides to a CVA rather than a Fresh Start Company
- hard to make enough post-tax profit to meet CVA payments
- company will be trading with a negative CVA credit profile
- CVA conditions restrict Director’s freedom including to borrow
- staff arrears not met by government – paid as creditors
- creating proposal is difficult and may not be accepted
HOW TO DO? – WE MANAGE THE WHOLE CVA TASK?
Five downsides to a CVA rather than a Fresh Start Company
-
Assess Current Financial Position and Discuss Futures
-
Advise on a Viable Shape of CVA for your Company
-
Defend Short Term against any pressing Creditors(s)
-
Help you create The CVA Proposal and Financial Forecasts
-
Assist as needed to Negotiate Acceptance by Creditors
WHICH IS THE BEST ROUTE FOR YOU?
If you wish to continue your business, shall we use our expertise and experience to negotiate an affordable CVA, or shall we close the Company by a safely managed CVL and transfer your business seamlessly to a debt free NewCo?
….OR SUCCESSFUL RELAUNCH?
If your liabilities are too great to “trade through “, is it best we negotiate an affordable CVA with your Creditors, or to close this Company completely and transfer your business, legally and seamlessly, to a debt free New Company?
PROTECTION TO CONTINUE YOUR BUSINESS?
Give me a call to discuss Protection, Urgent Defence, or more extreme measures to ensure your Business continues.
Michael O’Connor M.A
Interco Director
Chichester :01243 624716
Horsham :01403 839766
or email : 
PROTECTION TO CONTINUE YOUR BUSINESS?
Give me a call to discuss Protection, Urgent Defence, or more
extreme measures to ensure your Business continues.
Michael O’Connor M.A
Interco Director
Chichester : 01243 624716
Horsham : 01403 839766
or email :
Chichester, St John’s House, St John’s Street, PO19 1UU : 01243 624716
Also in : Horsham, Afon Building, RH12 1TL : 01403 839766
Interco Management Limited
BUSINESS INSOLVENCY SOLUTIONS FOR DIRECTORS AND BUSINESS OWNERS IN CHICHESTER AND SUSSEX
