Insolvency is an area of knowledge that most people (thankfully) come across rarely in their lives. It can seem an alien world full of arcane knowledge and unusual terms. In this section of our website we have set out to explain some of the work involved in being an Insolvency Practitioner and to answer some frequently asked questions:
Insolvency can occur when a company is unable to pay its debts as and when they fall due or when the value of a company’s assets is less than the amount of its liabilities. Essentially, when a company is no longer able to service its debts it is the responsibility of the directors to take appropriate action to make sure that the loss to creditors is minimis...
In the UK, insolvency is the term used for a business which is unable to service its debts as and when they fall due, bankruptcy only applies to individuals. There are a number of procedures that the Insolvency Act 1986 allows: Company Voluntary Arrangement (CVA) Under a CVA the directors or the Administrator (if the company has been placed into administration) ...
An Insolvency Practitioner (IP) in the UK must have passed the insolvency examinations in the UK, have experience of insolvency case-work and have satisfied an authorising body that they are a fit and proper person to carry out the role. IPs are registered with the Department for Business, Innovation and Skills (BIS). An IP’s role is primarily to try and rescue a busin...
An Administrator is appointed when a company is insolvent or at risk of going into insolvency. The process of going into administration can be started by the directors of the company or by a creditor applying to the Court. The directors may be advised and assisted in this process by an Insolvency Practitioner. A person appointed as an Ad...
A company is placed into compulsory liquidation when the Court makes a winding up order because a creditor has presented a petition. The Official Receiver ("OR") is appointed liquidator. A creditor can ask the OR to appoint an Insolvency Practitioner of the creditor's choice as liquidator. Gore and Company is asked to act as liquidator by creditors ...
A recovery professional specialises in corporate turnaround and rescue. Usually a Licensed Insolvency Practitioner with a detailed knowledge of legal recovery procedures, he will work with the directors in order to develop a plan to save the business. This usually involves understanding the causes of the difficulty, formulating a workable plan, preparing reliable profit and ...
Creditors have many rights during a formal insolvency procedure. Whether a company is in liquidation, administration or some other insolvency procedure the rights of creditors are similar and include: Creditors have the right to be asked to attend meetings. The frequency of meetings varies with the type of insolvency process. Creditors also have the right to ask the liqui...
Gore and Company covers the London area from its offices in West London. Services provided include: Recovery and turnaround. We work extensively in the manufacturing and services sectors with a range of firms to help them to deal with financial difficulties. This involves investigating the business problems and recommending practical and innovative solutions that aim to a...
Gore and Company covers the south Wales region from its offices at Cardiff Gate. Services provided include: Recovery and turnaround. We work extensively in the manufacturing and services sectors with a range of firms to help them to deal with financial difficulties. This involves investigating the business problems and recommending practical and innovative solutions that ...
Gore and Company covers the Thames Valley region from its offices in Reading. Services provided include: Recovery and turnaround. We work extensively in the manufacturing and services sectors with a range of firms to help them to deal with financial difficulties. This involves investigating the business problems and recommending practical and innovative solutions that aim...
Please note that the above is provided for illustration purposes only and comprises a short view of extremely complex insolvency and other legislation. This is a complicated area and specific advice must be sought before undertaking any course of action or before refraining from any course of action. Gore and Company takes no responsibility for any loss incurred to or by any person who either acts or refrains from acting on the basis of the above or of any other item published on this website. The above note may not be reproduced without the prior written consent of Gore and Company.
This business faced financial difficulties due to fixed royalties payable to DVD patent holders, increasing competition from overseas firms and falling demand during the recession. The Directors sought Gore and Company’s help and, after a business review concluded there was no hope of trading out of its indebtedness, were advised to put the company into Administration as soon as possible. ...
If you are a company