12 November 2020: Forgive us for beginning this article by repeating a point made many times before but the formal appointments that we deal with really are just the tip of the iceberg of enquiries that make up our working days.
A very apt recent example of this, which happens to also provide a fine example of us delivering on our motto of providing the right advice first time, every time regardless of the fee involved for us, was that of a company that sort our advice with the thought that a formal insolvency process was very much inevitable.
The directors of the company were in receipt of a petition for their winding-up for a debt due to their majority creditor and which pre-dated the current pandemic. The directors were greatly concerned that their options involved either a voluntary insolvency process or the petition leading to the company being wound up by the Court. Their concerns being based on the age of the debt and the creditors growing frustration at the lack of promised payments.
Due to some technical issues surrounding company structures and contractual matters, discussions to resolve the position took place between the company, their solicitor and us. The directors’ suggested solution was that of a company voluntary arrangement (“CVA”), a procedure they were aware of and thought it may help. The solicitor, on the other hand though that an Administration appointment would provide a more suitable option.
Keeping in mind that either a CVA or Administration process would result in quite a handsome fee for us, the suggested way forward by BRI was to simply to let us talk to the petitioning creditor in the hope of avoiding any process at all. Thus saving costs and achieving a greater return to the creditor.
Once engaged for this purpose, BRI corresponded with the creditor and held discussions with them. Much to the satisfaction of the company, the creditor and us, an agreement was struck between the two parties in respect a repayment plan for the settlement of the outstanding debt.
The settlement agreement was finalised via a deed prepared by the company solicitor and upon its signing, the best outcome was achieved for all parties.
Excuse me for repeating myself but as demonstrated above, if you or any of your clients have any concerns regarding their solvency, please be assured here at BRI we will always provide the right advice, first time every time, regardless of the fee outcome to us.