What are the options for a struggling business?

When a company finds itself in serious financial difficulty, they have serious questions that they need to face up to. The most sensible option regarding what to do next may be to call in specialist insolvency practitioners to confront the challenges ahead. However, for many companies there is confusion surrounding their options. What will happen to the company assets? Which option is the most sensible one for my business? How much control will I still have? We have looked at a few of the most common options that a struggling business can pursue: Administration Administration is a process that protects a business from creditors whilst the process of restructuring takes place. The process can involve a reduction of overheads, re-financing or key changes to the management structure. Liquidation Liquidation becomes the most likely option if the company is unable to continue running and, as a result, administration is not possible. The central objective of liquidation is to ensure the release of as many assets as possible to pay off creditors. CVA Alternatively, creditors may agree to the installation of a Company Voluntary Arrangement (CVA) if they are convinced that this will achieve a better long-term result than liquidation. A CVA is a legally binding agreement that allows a company to freeze any unsecured debts and repay them over a specified period of time. Compulsory Liquidation Compulsory liquidation can only happen when a court order is issued to wind up a company completely. It can be one of the most complex options for a company which is in trouble due to the potentially lengthy nature of the process. Once the court has appointed a local Official Receiver then a corporate insolvency service can become involved. Corporate insolvency specialists A corporate insolvency specialist can assist business leaders, financial directors and stakeholders to deliver pro-active solutions for their business. They can also offer insightful advice regarding how to proceed in the unstable economic climate of 2013.

If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143 or visit our website.

Protecting your Business

The current economy is having an impact on nearly every business. Many businesses are experiencing issues and external conditions which are now out of their control, leaving them concerned about their responsibilities and potential liabilities.

It’s crucial that if you are facing financial pressures they are not ignored as reacting early can help protect both your individual and business’ best interests.

Taking the correct professional advice and being aware of your options gives your business the best chance of survival.

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Moorfields appointed Administrators over Teknoflex Ltd the UKs largest supplier of flexible and flex-rigid multilayer circuits

Buyers are being sought for the UK’s largest manufacturer and supplier of flexible and flex-rigid multilayer circuits Teknoflex Ltd, which was placed into administration on Monday 14^th January 2013.

The business, which operates in Sussex specialises in the design, manufacturing and assembling of flexible circuits and flex-rigid multi-layer inter connection systems to both the UK and overseas market with a particular focus on high technology, niche products for the defence sector. The business has traded for over 50 years with over 100 employees and has established key overseas trade in the US, France and Germany.

Simon Thomas and Shelley Bullman of leading insolvency and rescue firm Moorfields
Corporate Recovery have been appointed administrators and are looking the sell the business as a going concern.

Simon Thomas, joint administrator at Moorfields Corporate Recovery, said:“Teknoflex is a leading UK manufacturer and supplier with a strong reputation for providing high technology, niche products to a specialised market. With over 50 years experience and high quality in-house design, assembly and test facilities the firm has a solid infrastructure in place that I am confident has potential both in the UK and overseas.”

Shelley Bullman, joint administrator at Moorfields Corporate Recovery, said: “We have seen a number of manufacturing businesses suffer in 2012 following difficulties in the eurozone. As a result the market suffered a period of decline. Unexpectedly the Markit/CIPS UK Manufacturing PMI index showed an increase in December 2012 leaving the industry optimistic about 2013.”

 

Lavish fraudsters Kallakis and Williams found guilty of defrauding Banks out of £750m

Moorfields Corporate Recovery assist Serious Fraud Office with conviction of two Mayfair property businessmen guilty of defrauding banks out of millions of pounds.

Achilleas Kallakis and Alexander Williams appeared at Southwark Crown Court today to receive sentencing for orchestrating a five year period of fraud to secure loans from Allied Irish Bank (“AIB”)totalling over £750m.

The pair were found guilty of using forged or false documents to obtain substantial loans to finance the purchase of a commercial property portfolio. Both are due to receive sentencing later today.

Simon Thomas and Shelley Bullman liquidators of leading insolvency and rescue firm Moorfields Corporate Recovery assisted the Serious Fraud Office (SFO) in uncovering the pairs wrongful trading activities when appointed liquidators over Oregon Finance Corporation and seven other companies used by Kallakis and Williams.

The liquidators conducted a series of investigations over the assets and liabilities of Oregon Finance Corporation the results of which were then provided to the SFO.

Kallakis and Williams is another example of Moorfields investigations team tackling fraudulent trading. In 2012, Moorfields were instrumental in obtaining a custodial sentence for two Slovakian businessmen who refused to handover £4m belonging to a UK company over which Moorfields were appointed liquidator.

Simon Thomas, joint liquidator at Moorfields Corporate Recovery, said: “Fraud is estimated to cost the UK economy billions, but the true burden of such a crime can never by known until each instance is made public as shown in the case of Kallakis and Williams. The pairs successful conviction demonstrates our ability as liquidators to uncover fraudulent trading despite a company being in liquidation. Moorfields hope to continue working with the SFO to try and prevent fraudulent trading."