Business recovery is sometimes needed if the company requiring company rescue has some cash flow problems or is facing some other problems in the business and requires a strategy to bring about business recovery to allow for a turnaround of the business and a company rescue.
Choose the method which works for you
A business recovery can involve various different methods. These can be informal methods of such as a company restructuring or business restructuring which will review the costs and expenses of the business, including evaluating employee structure.
Formal methods of business recovery
Such a business recovery strategy may also include a more formal voluntary arrangement with creditors to provide some breathing space to allow for a company restructuring and therefore a business recovery, such as entering into a company voluntary arrangement.
A company voluntary arrangement is a voluntary arrangement agreed between a company and its creditors that the creditors of the business requiring company rescue will not pursue their debts by way of any formal insolvency process against the company in business turnaround during the course of the company voluntary arrangement.
Business recovery is more beneficial to a company suffering financial problems if there is a viable business to allow for a business restructuring and a business turnaround to achieve a full business rescue. Many formal insolvency processes have a stigma attached and inevitably, unless allowing for a sale of a business in a situation such as a pre-pack administration sale, will usually lead to the cessation of trade of the business, preventing a business turnaround. A formal insolvency process may also lead to an investigation of the directors of the company and can be more expensive than a business recovery strategy that has been devised by a business rescue expert.
At Francis Wilks & Jones our team of friendly experts frequently advise directors on company restructuring and business turnaround with the ultimate aim of business recovery and company rescue. Let our team of business rescue experts talk through the options with you for your business.