Supporting Businesses Nationally
Are you concerned that your business
could be insolvent?
How Opus can support business owners and directors
Our team can explain the options available to help return your business to profitability. We help business owners, directors and all stakeholders navigate their way through the uncertainty that distress brings.
Is my company insolvent?
There are two tests to determine if your company is insolvent or not:
The Balance Sheet Test – where your company’s liabilities exceeds the value of its assets
The Commercial Test – where you cannot meet your liabilities as and when they fall due
If you meet either one or both of these tests, you need to take positive action. It might not necessarily mean that you have to deal with the company’s affairs formally as long as there is a realistic belief that the company can generate profits in the future to return the business to a solvent position.
You must be aware that if action is not taken and the position financially deteriorates over time, then there may be issues of Wrongful Trading which can lead to personal liability on the Directors for not having taken action sooner.
Our dedicated team is on hand to provide assistance to Directors of companies in financial difficulties. When a company is insolvent, a Director has a duty to minimise losses to stakeholders. Our senior management are available to talk to you about the problems you and your company face with complete confidentiality.
What to do if your company is insolvent
Talk to us immediately. Continuing to trade without any real prospect of avoiding Liquidation runs the risk of Wrongful Trading which gives rise to the prospect of personal liability. We can determine how to deal with your challenges.
- Where there isn’t the need for formal restructuring, our Advisory team can work with you to deal with the operational and/or financial challenges to restore the company to solvency
- If a business is fundamentally viable but its liabilities are significant, then a formal restructuring process is likely to be required in order for the business to be saved. The options available would be either an Administration or a CVA
- When a company needs to close down and wind up its affairs, it should seek to enter into a Creditors Voluntary Liquidation (CVL)
Resources and guides
Our latest articles to support decision making for business owners and directors. These provide an overview on what is going on in the market and information about the options available when a company is facing challenges.
For more information on business options, we offer an initial free consultation to review the situation and make recommendations on the best way forward.
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