Inevitably however, many situations arise in which a business cannot be saved, and this is where a range of formal insolvency procedures become available, all of which are offered by the practice. Depending on the circumstances, these are:
- Administrative Receiverships
- Company Voluntary Arrangements
- Creditors’ Voluntary Liquidations
- Individual Voluntary Arrangements
- Bankruptcy Administration
- LPA Receiverships
It must also be borne in mind that the skills of insolvency practitioners extend beyond looking after businesses in financial distress. Often the directors and shareholders of a successful and prosperous business seek an exit route to enjoy the fruits of their labours. This can often best be achieved by a formal, tax-efficient procedure known as a Members’ Voluntary Liquidation.
Whilst this is not an insolvency procedure, it is controlled by the same legislation (The Insolvency Act 1986). As with other such procedures, it can therefore only be carried out by licensed insolvency practitioners.