Liquidation As A Solution
Liquidation can be the solution to a struggling business. The solution that liquidation provides really depends on what the directors wish to do and what their ultimate aim is. If the company has a cash flow shortage or is under pressure from HMRC or other creditors then liquidation is an option.
“Most directors don’t realise that liquidation can be used to restructure a business into another company; thus replacing large debt with no debt.”
The Insolvency Act and Rules 1986 govern the liquidation process and provides the framework for placing a struggling company into liquidation. Liquidation itself can be used to end the company all together and allow directors to leave the company debt behind once and for all. However most directors don’t realise that liquidation can be used to restructure a business. The debts of the business are left behind in the company once it has entered liquidation however its assets can be sold to the directors so that they can trade on in another company or in a partnership. Directors can purchase websites, order books and other assets from the liquidator out of the liquidation to enable the business to continue.
Liquidation Case Study: Liquidation Restructure
“A mortgage broker company had a HMRC debt of £347,000 and also had bad debt of £80,000 which had put a significant strain on the company’s cashflow. The directors wished to continue to trade and save the business therefore they decided to restructure the business through liquidation. The directors placed the company into liquidation and bought back the assets of the company. They traded on through a new company and left the old company’s debts behind in the liquidation. The directors were able to keep the same name of the company even though they had placed the original company into liquidation. Liquidation is a legal proper option for restructuring struggling businesses. Contact Our Liquidation Experts To Find Out More About Your Liquidation Options”
Liquidation Case Study: Liquidation Closure
“A 67year old director wished to place his company into liquidation because although he had been trading the company for 26 years in the ventilation industry, the company had amassed a HMRC debt of over £200,000. The director placed his company into liquidation as he wished to retire and the company could not pay the outstanding sum. The company was placed into liquidation and the director was able to retire. Contact Our Liquidation Experts In order To Find Out More.
So whether you are interested in liquidation because you wish to write off debt or whether you wish to restructure your business via liquidation; our liquidation experts can assist. Perhaps you just want to find out more about each liquidation option before making the decision itself. We understand and our experts are at hand to answer your questions and set out your liquidation options in a clear and concise way.