We were asked to assist a director of an insolvent company facing pressure from the bank. The bank were demanding that an Administrator be appointed to take control of the business. We very quickly came up with some ideas but we needed to buy some time to consider the options more fully. We therefore helped the director negotiate more time from the bank. In that time we reviewed the position and obtained further advice and valuations to devise a workable solution.
A meeting with the bank was then arranged at which we explained our suggestion to resolve the problem. Given the fact that an insolvency appointment would most certainly devalue the property assets, and prove costly, the bank listened to our proposals. We also had to assess the impact on other creditors so that their position was not worsened and that the wrongful trading provisions did not cause a problem for the directors. Once the bank took their own advice they came back to us and confirmed they were agreeable to the strategy with a timescale of 12-18 months.
This kind of strategy works very well when we get involved early and before the banks make an appointment.
We have a great deal of experience formulating these exit routes, so if you are facing financial pressure and think there is no way out just contact us to see if we can help.
