Contrary to popular opinion, there are options for your business when faced with insolvency. We were recently approached by a Partnership business, which ran as a Hotel. The Hotel was facing severe cash flow difficulties and was under pressure from creditors. In particular, the main Creditor HMRC had commenced proceedings to wind up the Partnership. The individual Partners had sufficient assets in which to pay creditors in full. However, the assets were properties which required some time to sell. We successfully assisted the Partners to put forward proposals for a Partnership Voluntary Arrangement (‘PVA’) with interlocking Individual Voluntary Arrangements (‘IVA’) for each of the Partners. This afforded the Partners with time to pay creditors in full plus statutory interest. We also assisted with finding a purchaser for the Hotel, which secured the business going forward and a future income for the individual Partners.
If your business is under pressure from creditors, there are things you can do before it’s too late. Contact us now for advice on how you can turn your business around.