Business Debt Solutions:

It is an inevitable consequence of today's highly competitive market economy, that some businesses will under-perform and others will fail. At such times, specialist professional advice will make a considerable difference.

If you find that your company can not continue to trade with its current level of liabilities, Brookvale can help advise on the right course of action.

Note. The solutions indicated below are for information purposes. The solution recommended to you by Brookvale may or may not include these solutions.

The liquidation of a company or business with a profitable future and full order book simply because of current financial difficulties can be very frustrating for all concerned. The shareholders lose their business and the creditors lose a customer who could be valuable once the current difficulties have been resolved.

The Insolvency Act 1986 provides for just such circumstances with the Company Voluntary Arrangement. This is a legal procedure whereby a company that is in financial difficulty can make a formal proposal to settle its debts. The proposal is then sanctioned by the courts and implemented by a Licensed Insolvency Practitioner.

This is a highly flexible procedure that can be adapted to the needs of both the company and its creditors. Creditors often prefer it as it provides greater and faster returns than liquidation while retaining the company as a customer once the difficulties have passed. A CVA is binding and prevents creditors from taking any further action, allowing the company to restructure its affairs and clear its debts without the pressure of impending liquidation.