It comes as no surprise that companies that are benefiting from government funding will need to avoid any type of formal insolvency process.
If a company receiving funding enters administration then that funding source will stop and the company will become vulnerable to devastating insolvency proceedings. So which way is a board of directors going to go when their accountants/advisors point out the inevitable looming position?
The reality is that most Insolvency practices will only advise on a Company Voluntary arrangement, a liquidation, or an administration. All of these will have a devastating impact on the company in ways that will negatively affect the people involved in the business, its creditors, its funders, existing clients and future business will be almost impossible to attract.
We have entered a period that now demands additional alternative methods to manage, control and avoid those insolvency outcomes and find new innovative ways of resolving matters privately with creditors, allowing the company to continue whilst restructuring certain mechanisms that enable a re routed money flow to the places it needs to get, that keeps creditors satisfied and focusses on income retention and growth.
This situation is a recent situation that has forced alternative solutions due to CV19.
Martin Howard Business recovery operates a hybrid insolvency turnaround formula that holistically examines the critical parts of the business and its exact positioning, taking into consideration and being able to react quickly to avoid threats and steer the company to a position of relative safety until the strategic restructuring can take place.
There will always be priority creditors at different stages. We grade these creditors and create a model that stabilises the current threatening position and provides a tailored commercial debt management platform so you can retain your contracts and funding sources.
For more information contact our commercial insolvency manager on
Tel: +447479739139 or complete our call back request to arrange an appointment.