Business rescue and restructuring
Start with viability
Business rescue begins with a practical question: can the company generate enough cash to meet its ongoing commitments after changes are made? A busy order book or positive annual accounts do not answer that on their own. Payment timing, margins, borrowing and overdue liabilities all matter.
We help you organise the position and discuss the routes available. That may involve changes to trading, negotiations with creditors or a formal insolvency process. Any formal appointment must be undertaken by an appropriately authorised insolvency practitioner.
Compare the available routes
- Operational changes: review loss-making work, overheads, collections and stock before committing more funds.
- Creditor negotiations: explore affordable arrangements where a viable business can address arrears.
- A CVA: consider a formal creditor proposal if the company can sustain the payments.
- Administration: assess whether a formal procedure could support a rescue or a better outcome for creditors.
New borrowing is only useful if the company can afford it. It should not be used to postpone an unavoidable decision without a credible recovery plan.
Build a forecast that can withstand setbacks
Show expected receipts by date and separate confirmed income from hoped-for sales. Include the costs of delivering existing orders, tax, payroll, rent and finance repayments. Allow for the cost and timing of any proposed restructuring.
Test a slower collection period or lower sales. If a small change makes the plan fail, the funding requirement and alternatives need further attention.
What to prepare
- Recent accounts and bank balances.
- A creditor schedule, including tax and finance arrears.
- A short cash-flow forecast and details of any funding offer.
- Major customer and supplier contracts.
- Legal notices and the dates by which a response is required.
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Common questions
Sometimes, but viability, funding and creditor interests must be assessed. Insolvency does not automatically mean every business activity has to end.
A discussion alone does not suspend enforcement. Any agreement or formal protection needs to be established; urgent notices should be addressed immediately.
Compare an orderly closure with continued trading. The effect on creditors, employees, company assets and director responsibilities needs to be reviewed.
Further reading: official GOV.UK guidance. General information; procedures and advice depend on your circumstances and jurisdiction.