Restructuring
Restructuring
As with all such problems, when it comes to restructuring, the earlier BRI is called, the better the prospects of recovery and success.
What is Restructuring?
Restructuring is a term used to describe the reorganisation of a company’s structure and financial operations. Sometimes, this also includes reorganising the legal ownership and other corporate structures of a company when financial difficulties are being faced. For successful restructuring, seeking the input and advice of an external third party is recommended.
Whilst the intention is generally to avoid the need for a formal restructuring procedure where possible, they do offer vital protection from hostile creditors whilst a strategy is drawn and implemented. BRI knows these waters well and can provide you with a safe port in a storm.
Restructuring can be a lifeline for companies that are struggling but are capable of being rescued. There are several options when it comes to restructuring.
Restructuring Procedures and Plans
Different restructuring procedures available to us include:
- Informal agreements with creditors, including Time to Pay Arrangements with HMRC.
- Moratorium – a break from creditors whilst other options are explored. This helps to avoid insolvency.
- Company voluntary arrangement (CVA) is a repayment agreement between the company and creditors.
- Court approved restructuring plan – a relatively new plan for debt repayments approved by the courts.
- Administration – a rescue of the business through trade or a pre-packaged sale.
What to do if Your Company Might Need a Restructuring Plan
When your company experiences a cash-flow crisis, it can give rise to panic. However, finding the time/space to stop, reflect and look at things properly can also provide opportunities. BRI can help.
All too often, businesses look to solve their own problems by seeking immediate cash injections via the personal funds of a director or a lender, which ordinarily comes with security over the business assets and/or a director’s personal guarantee.
You need to fix the underlying structural problems first; otherwise, the phrase “good money after bad” may never have been truer.
Our restructuring professionals are happy to be your “phone a friend” and will help you build a platform for future success. This will start with a business and solvency review. You will then get the help you need to implement any required restructuring plan, including introductions to alternative funding options where what the funders are looking for is already known and understood, ensuring that your time is well-spent.
Other Reasons for Restructuring
Financial pressures may not be the only trigger for restructuring a business; advice may be sought when the following are required:
- Stabilisation and operational turnaround;
- Demergers and corporate splits;
- Streamlining the group structure;
- Managed exits
Contact BRI Business Recovery and Insolvency if you would like further information and assistance regarding any aspect of restructuring your business. There is no charge for doing so, and it is done without obligation.
Moratorium
Company Voluntary Arrangement
Court Approved Restructuring Plan
