Over the past week, we have taken a number of calls from concerned directors asking us: should I put my company into liquidation?
My Insolvency are non-appointment taking insolvency firm and our initial thought is always: can the business be saved?
Whilst we are still waiting to see the specific terms, the suspension of wrongful trading legislation coupled with the adjourning of winding up petitions, appears to provide some breathing space to directors. *
We would therefore not recommend rushing into an insolvency procedure at this time, but instead take advice on how to continue to trade or cease the majority of operations, in a manner that is not to the detriment of creditors.
If the business was already insolvent before the Coronavirus, then current events are unlikely to have improved the position and therefore, good advice now is more important than ever.
Sadly, it is inevitable that we will see a significant increase in insolvencies as we go forward, however, we would rather focus now on offering support to businesses and our network of professionals.
If you need free, practical advice on what steps can be taken to protect your business, please do not hesitate to contact our insolvency specialist, Stan Coltman, on 07885 456144.
*For information:
Wrongful Trading
This applies to a business which, despite being insolvent, continues to trade.
Winding Up Petition
An application to Court to have a company wound up and a liquidator appointed to realise the assets and investigate the affairs of the company and its directors.
