Company Voluntary Insolvency
When all else fails a company may opt for voluntary liquidation and may do so in a number of ways. One of the most popular ways these days for a business to become, as it were, reborn is to start what is known as a pre-pack (or pre packaged) administration as the main part of the company voluntary insolvency.
This involves selling off the worst performing parts of the business, including its debts, and repackaging it as a new entity with a much leaner and stronger look. There are many advantages of doing this including the fact that the workforce and staff will keep their jobs, and if it is a big employer its preservation will be a good move for the entire community as well. Directors also retain their livelihoods and shareholders, to a gretaer or lesser extent, will get to keep their part of the profits as well.
One of the dangers of a pre-pack is that the company must be offered for sale in the public domain and not just offered back to the original directors or shareholders (that would be too easy!) and because of this it may be snapped up by a competitor. For this reason it is essential that you get the right firm working for you to ensure that this does not hapen. A company voluntary insolvency is complicated enough without having predators swimming around at the time when the business is most vulnerable.
If you would like to talk about company voluntary insolvency to a specialist with 17 years corporate insolvency experience then enter your details into the web form below for a no-obligation chat.
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