We are vastly experienced in advising all sizes of corporate clients on how to restructure or reorganize their companies in both solvent and insolvent situations, depending on the particular circumstances of your company, or group of companies.
Company Voluntary Arrangements (CVA)
A company can face a temporary period of financial difficulty in which it is unable to address its current liabilities as they fall due, however if it were given some time then it may be able to deal with its debts in full or in part and thereafter continue in business. In such situations a CVA, may be an appropriate way of saving a company but this will require a sufficient portion of the company’s creditors agreeing with the company’s proposal for a CVA. Our firm is able to consider your company’s particular circumstances and advise you on whether a CVA is appropriate for your company. Mary Frances Kearney is a licensed insolvency practitioner and is therefore able to act as nominee in putting the company’s proposal to its creditors and to act as supervisor of the CVA if same is accepted by the creditors.
Creditors’ Voluntary Liquidation or Shareholder’s / Director’s Winding Up Petition
In some cases the company’s shareholders or directors form the view that the company cannot continue in business as there is no real prospect of the company being able to trade out of its poor financial position. Simply ceasing to trade will not of itself formally conclude the company. If none of the company’s creditors have already petitioned for the company to be wound up then it is open to the company to do this itself through either a shareholder’s or director’s winding up petition, or through a Creditors’ Voluntary Liquidation, known as a CVL. These options are available to any insolvent company and the definition of insolvency is usually taken to be either the company’s inability to discharge its debts as they fall due or the value of the company’s liabilities being more than the value of the company’s assets.
Members’ Voluntary Liquidation (MVL)
Where a company has come to the end of its useful life and its assets are worth more than its liabilities we can advise the shareholders on the best and most tax efficient way to formally conclude the company’s affairs such as a Members’ Voluntary Liquidation, known as a MVL. This option is available to solvent companies who can pay all of their debts within 12 months.
Creditors of Limited Companies
If you are a secured or unsecured creditor of a limited company who has entered into some form of formal insolvency process then we are able to provide you with a clear and simple explanation as to how such a process affects you and your ability to realize your security and recover your debt. We are also able to assist you by accompanying you to creditors’ meetings or attending same on your behalf and assisting in the completion of proofs of debt and proxy forms. We are also able to liaise directly with the company’s insolvency representatives on your behalf in order to bring any relevant matters to their attention or to seek clarification on any issues which you wish to raise as a creditor.
Read our news article titled "Insolvency Advice for Limited Companies".