Work in progress – the right advice and hopefully commerciality will prevail!
30 June 2020: BRI’s Northampton office has been referred a matter by a local accountant whose client company has ceased trading.
The company in question has no HMRC liabilities or employees but has liabilities of approximately £80,000 owed to 12 creditors. The company’s only asset is £20,000 in the bank account. The accountant asked if we could assist the director in placing the matter into liquidation – the answer was of course we could, but was that in the best interest for all concerned.
Given the number of creditors involved, the fact that HMRC are not owed anything and there are no employees that may be entitled to various redundancy entitlements, BRI’s suggestion was to see if creditors would accept a full and final payment of approximately 20 pence in the £ and to avoid a formal insolvency procedure and the associated costs. The director and accountant were pleased with this approach and the largest creditor has been contacted verbally with the proposal and they confirmed it is certainly something they will consider.
As the title suggests, this is WIP but we are hopeful commerciality will prevail – please keep a watchful on our website as we will update it with the outcome in this matter.
Should your company be experiencing financial pressure, please contact any one of BRI’s management team for advice to see if we can help avoid a formal insolvency procedure.