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Insolvency & Liquidation Advice. 

 

In our restructuring offering we combine legal, turnaround and business advisory skills to help you navigate and decide the best course of action to take when you are navigating the complex landscape of insolvency, bankruptcy, and restructuring. 

 

If you feel that If you have been served with a 'Statutory Demand' or a 'Winding Up Petition' you need to act fast as time is critical. 

 

A company is considered insolvent when a company is "unable to pay its debts".

 

There are two main tests set out in section 123 of the Act to determine when a company is unable to pay its debts:

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  • The "cash flow test". This is set out in section 123(1) of the Act which says that a company is deemed to be unable to pay its debts if (among others):

    • it is proved to the satisfaction of the court that the company is unable to pay its debts as they fall due; or

    • a creditor, who has served a written demand for more than £750, has not been paid or the amount has not been settled to the reasonable satisfaction of that creditor within three weeks of the creditor's demand; or

    • a court has ordered execution, payment or process in favour of a creditor and this is returned unsatisfied (in full or in part).

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  • The "balance sheet test". This is set out in section 123(2) of the Act and provides that a company is deemed unable to pay its debts if it is proved to the satisfaction of the court that the value of its assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities.

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There are a number of situations that you could find yourself facing: 

  • Company Voluntary Arrangement. 

  • Administration.

  • Liquidation;

    • Compulsory liquidation. 

    • Voluntary liquidation.  

  • Fixed Charge Receiver. ​

  • Administrative Receivership. 

 

To carry out any of the above you will need a licensed Insolvency Practitioner. We help clients chose the right Insolvency Practitioners from our panel of Insolvency Practitioners. We understand the perspectives of all the parties involved and work with them to achieve the best results for our clients. 

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For more information about how we can help your business then please get in touch at enquiries@argentumcapitalpartners.co.uk

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