4 May 2020: It has been reported that there has been a decrease in both creditors’ voluntary liquidations (“CVL”) and compulsory liquidations since the UK went into lock down – see graphs below.
The decrease in compulsory liquidations is no doubt as a direct result of HMRC not issuing winding-up petitions unless they believe it is in the public interest to do so.
The decrease in CVLs is likely to be by way of sensible and commercial discussions being held by company directors in negotiating payment terms with suppliers and stakeholders.
Since the UK went into lock down, BRI’s management team have been able to assist many company directors in negotiating alternative and creative informal recovery solutions to avoid a formal insolvency event occurring. If you are a director of a company that could use a helping hand to keep the liquidation curve low, please contact any one of the team at BRI.