Limited Company Insolvency

Tuesday, February 7th, 2012 at 0

Limited Company Insolvency Help

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Back in September last year, I got a phone call from a bank manager to have a chat with a client of the bank who had fallen in to financial difficulties. I met up with Paul a few days later in London who explained his ltd company had debts totalling £357,000 and only £63,000 due in from company sales and stock of £129,000 at cost and other assets consisting of motor vehicles and office equipment of about £39,000.

Paul could not see his way out of his current debt situation for his limited company. It did not take an accountant to work out that this limited company was way over its head unless it could find an investor, which under the current climate is hard, very hard.

After Paul explained to me that his company was very viable but the company debts had forced it to slow down as any money that came in went to pay debts thus leaving no or little for wages and buying in supplies.

After weighing up pro’s and con’s Paul had 3 options, a company administration, a CVA or Pre-pack administration for his limited company. If you need to know more about how each option work, click on the links above.

My own personal recommendation was to go for the Pre-Pack Administration because this allowed the directors to buy back the assets which were worth £39,000 for just £17,000 and a further £10,000 for the good will and intellectual property of the company and trading titles. For less than £70k Paul purchased his old company assets back and also in the process got rid of staff that he no longer need by making them redundant and also wiping out all his unsecured creditors in one clean sweep with our help and guidance.

Paul’s new company is making profits after 3 months and is looking to take on new employees to grow the business.

So tell me about your limited company and its debts and problems that you are having that are keeping you up at night?

I will do a deal with you, if you tell me your problems just like Paul did and I will promise to find you the right solutions to get you from where you are to where you would like to be with your company, that sound good to you? Good. You can call me on 0800 24 0800 and even the phone call is FREE.

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