April 2014 – Out of the Recession
18 October, 2016
Incorporated businesses coming out of recession often need to recapitalise to grow, or to repay accumulated debt. The situation often includes pressing creditors, or/and rent arrears. An alternative or additional to raising capital is to explore the benefit of entering into a Company Voluntary Arrangement.
Such an arrangement is very flexible and can involve:
- Reduction of debt
- Deferment of debt over years.
- Essential suppliers being paid.
- Renegotiation of commercial lease terms.
- Protection of action against the company by a moratorium.
- Flexibilty in the terms of the arrangement.
- The business of the company remaining within the control of the directors.
We have experience of putting into practice such arrangements and their implementation requires the active participation of the professional accountant in preparing a business forecast at the outset and periodical management accounts to plot progress. This is of benefit to the company going forward and maintains a close relationship with its accountant.
For more information please speak to Peter Levy, David Hughes or Virgil Levy