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Archive for June, 2011

Debt Rescue and Business Recovery

Thursday, June 30th, 2011

When most companies first start to experience financial difficulties, the first thing many of them do is to take out a loan. However, loans are often only short-term solutions which frequently create more debt problems in the long -term. In such situations, it is better to deal with the root cause by employing insolvency experts who can help to create a company debt rescue plan.

Business recovery services

Here at Cooper Matthews, we offer business recovery services which can help companies to identify how they need to change in order to become financially viable once again. We see compulsory and voluntary liquidation as very much a last resort and strive to do everything we can to avoid this and help companies live on to fight another day.

Debt rescue

There are several different company debt rescue options:  Company Voluntary Arrangements (CVA) can be put in place to re-arrange a company’s debts to ensure they can continue to operate normally. Administration Orders can be employed to re-organise how a company functions to increase financial growth; and Phoenixing processes can be applied to help a company eliminate its established debts in order to start again afresh.

Perpetual borrowing (and lending) can leave many companies needing business recovery services. Here at Cooper Matthews, we can offer business rescue ideas, such as Business Refinancing, which can help companies to manage and borrow finances in ways that are more controlled and accountable. To learn more about our services, get in touch with us today.

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Options for Tackling Business Debt

Monday, June 27th, 2011

Any business can be adversely affected by today’s unpredictable economic environment. Therefore, it is essential that companies recognise when their business is at a critical juncture so that they can take measures which might prevent them from going under completely.

Company Voluntary Arrangement (CVA)

A CVA can be used when a company is unable to continue to trade successfully because of the burden of its debt. A CVA basically involves reorganising a company’s debts so that their repayments are more affordable.

Business Refinancing

Today’s bank lending policies can often make it hard for struggling companies to raise the money they need to keep their businesses operating. However, business refinancing methods such as asset financing, trade financing and invoice financing can be very effective alternatives to the more established financial channels.

Pre Pack Administration

Also known as ‘Phoenixing’, this process involves forming a new company to buy the assets from a failing business. The new company is then free to trade without the burden of the old company’s outstanding debts. The old company is simply liquidated and the proceeds from its sale are distributed amongst its creditors.

Administration

Any struggling company which is under threat of being wound up by its creditors can apply to be put into administration by its directors or shareholders. This can provide a valuable ‘time out’ so that a viable financial solution might be found.

To learn more about these solutions, get in touch with us here at Cooper Matthews today.

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Advantages of Pre-Pack Administration

Friday, June 24th, 2011

The process of Pre Pack Administration (also known as ‘Phoenixing’) has become far more prevalent in recent years. This process basically involves a new company being formed in order to buy the assets and contracts of a failing company. All outstanding debt is left with the old business which is consequently liquidated, thereby enabling the new company to trade on in debt free circumstances.

Dealing with an ailing company in this way has several advantages:

The main advantage of Phoenixing is that the new company is free of the old company’s debts, so unlike a CVA, there is no obligation to make any allowance for debt repayments. In addition, the Phoenix company can ‘start afresh’ with new procedures and ways of working that are more practical (and financially viable) than those used by the old company, and unfavourable property locations or adverse leasing agreements will no longer be an issue. One final advantage of the Phoenix process is that it can also be a very good way to maintain job prospects for employees who will need to make a transition from the old failing company.

With so many advantages, it is no surprise that more companies than ever are now using the Phoenix process to manage their failing companies. Of course, it needs to be remembered that this process will not always be the best solution for every company that finds themselves in such a situation. To learn more about tackling business debt, browse our pages here at Cooper Matthews.

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Cooper Matthews Comment on HMRC’s Time To Pay Scheme

Friday, June 24th, 2011

Cooper Matthews, a leading provider of business debt advice and solutions for small to medium businesses requiring financial advice, comment on the HMRC’s decision to wind up their popular Time To Pay scheme which has helped many businesses through economic difficulty.

Time To Pay (TTP) allowed viable businesses to defer tax payments through the economic downturn. Businesses who are unable to pay on the due date to make payments over a period they can afford. However, over the past 12 months, the number of scheme arrangements agreed by HMRC has dropped 43% from 57,800 to 32,900 in the first quarters of 2010 and 2011. The number of rejected applicants rose by 50% over the same period.

TTP is only granted when a business offers the best payment plan they can afford realistically, and the TTP period is as short as possible. Businesses are often asked to apply for bank loans or make a tax payment with a credit card before becoming eligible for the scheme.

“Payment terms are becoming more stringent, with businesses being offered shorter payment plans, two-thirds of which are now three months or less,” a spokesperson for Cooper Matthews commented. “It is worrying that these figures show HMRC is winding it down at a time when businesses are clearly still struggling. We may not technically be in a recession, but a look at the six month trend shows growth is flat-lining. If the scheme does wind down, companies could be looking at more business debt accruing over coming years.”

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How to Save a Financially Ailing Company

Tuesday, June 21st, 2011

Even when it seems your company is no longer financially viable enough to continue trading, there are certain steps which you can take to ensure your business might live to fight another day:

Company Voluntary Arrangement (CVA)

A CVA is a legally binding agreement between your company and its creditors which arranges for your company to repay a fixed amount which is lower its actual unpaid debt. These repayments are calculated monthly according to what your company can realistically afford to pay and any debts which remain at the end of the arrangement period are written off. A CVA is a good option if you genuinely believe that your company could have a viable future after your current cash flow problems have been dealt with.

Pre Pack Administration

Pre Pack Administration is a process which involves the directors of an insolvent company creating a new business in order to buy the assets of the company which is failing. The liabilities of the old company such as unpaid debts and stifling lease agreements remain with the old company, which is consequently liquidated. The failing business’s creditors do not need to be involved or give their approval for this process to happen. As the new company appears to rise from the ashes of the old one, this process is often referred to as ‘Phoenixing’.

For more information, and to view our full range of business debt services, take some time to explore our pages here at Cooper Matthews.

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Financial Difficulties and Business Rescue Services

Saturday, June 18th, 2011

The recent economic downturn has lead to more companies than ever experiencing financial difficulties. No matter if they are small companies trying to becoming established within their industry or large multi-nationals who are recognised worldwide, no business or organisation is immune to the potentially devastating effects of unfavourable market forces.

Financial problems
It is inevitable that business insolvency will befall any company once their liabilities exceed their assets, or they become unable to pay debts which are due. When this happens, the only way a company can facilitate a possible recovery is by completely overhauling and restructuring their financial model.

Rescue services
Debt rescue services can help companies who are experiencing severe financial difficulties to ‘steady the ship’ and make themselves more financially viable. In addition, struggling companies can also use debt rescue services to learn how to operate their cash flow and financial resources more effectively in the future.

Cooper Matthews
Here at Cooper Matthews, we provide specialised business rescue services such as refinancing, Phoenixing, and liquidation to help companies rehabilitate their businesses. Our insolvency experts are vastly experienced professionals who are able to offer guidance and advice to Directors and Financial Managers of any small-to-medium-sized companies in order to help them deal with their finances in a more effective manner. With our services available across all of England and Wales including Cardiff, Bristol, Exeter, London, Birmingham, Liverpool, Manchester and Yorkshire, we’re always at hand to help with all manner of corporate and business debt.

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What a Winding Up Petition Means for your Business

Wednesday, June 15th, 2011

If you have a company cash flow problem, then it is time to call in the experts. For many, all is not lost and it is not too late to save or rebuild your business. Cooper Matthews can help you with your business refinancing and restructure in a number of ways. For others, sadly, it may be the end of the line and Cooper Matthews can also help you to face this.

Compulsory liquidation, also known as winding up, can be instigated by your creditors when you owe more than £750. Winding up petitions are now used more and more frequently when business debt is outstanding and needs to be paid. Obviously, this isn’t a very pleasant process and the consequences for your business are serious.

You must make sure that you act within 7 days of receiving the winding up petition by contacting a licensed Insolvency Practitioner. Cooper Matthews are based in Leeds, but we work with local Insolvency Practitioners across the UK, so wherever you are we should be able to help.

Although they are serious, a winding up petition needn’t be the end of the road and we can discuss alternative solutions with you to manage your business debt and get your company out of the black hole. One option could be to start a Voluntary Liquidation yourself, which will give you more control over the rest of the process. In all cases, it is essential to contact an Insolvency Practitioner like Cooper Matthews to get some business debt advice as soon as possible.

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Cooper Matthews Comment on Silentnight Seeking a Company Voluntary Arrangement

Monday, June 13th, 2011

Silentnight, one of the UK’s most successful bed manufacturers, have been forced to seek a Company Voluntary Arrangement (CVA) after the company’s growing debts led to banks refusing to renew their existing loans.

Silentnight’s chief executive claims that the company continues to make profits and generate cash, but that pension liabilities dating back to acquisitions made during the 1980s and 90s have rendered its debt unmanageable at the current time.

A CVA would enable Silentnight to receive an immediate injection of cash and continue trading, and Cooper Matthews, a leading provider of business debt advice and solutions for small to medium businesses, hope that the story will encourage many of the smaller businesses that are struggling in this difficult economic climate to consider a similar course of action.

“We never like to see any company suffering cash flow problems, regardless of their size,” commented a spokesperson for Cooper Matthews. “But we would like to think that seeing such a long-established and renowned company such as Silentnight making use of debt rescue services will show owners of smaller businesses that there is no shame in seeking out help.

“Unfortunately there is a stigma attached reaching out for assistance with financial problems, but the reality is that business debt services from experts such as us at Cooper Matthews can be the difference between a company falling into bankruptcy or recovering and establishing a sustainable business model.”

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Company Debt Rescue Services to Stop You from Sinking

Sunday, June 12th, 2011

It’s a very fortunate business that ticks along with everything plain sailing. Most companies will encounter some rough seas at some point, but don’t let that business debt drag you down like an anchor. Cooper Matthews has a variety of company debt rescue services which can pull you safely back to shore once the storm has hit.

A Company Voluntary Arrangement allows you, through an Insolvency Practitioner, to reach an agreement with the creditors over how to repay your debt. This allows your company to clear its debts while continuing to trade.
Voluntary Liquidation is another form of company debt rescue which lets you clear your business debt by dissolving the company and starting again.

Pre Pack Administration, or phoenixing, helps you to form a new company with which you can buy the assets of your original company once it has gone into administration. This provides more stability for your business and continuity of service.

Other forms of business refinancing are available and a Cooper Matthews adviser will discuss the various options with you. Any and all of these processes require a licensed Insolvency Practitioner to agree that this is the right way forward for your business and for all our services, we get to know you and your business through consultations so as to make the best decision possible. We take into consideration the size of your company, what you do and your place in the market before choosing the best option to move your business forward into calmer waters.

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How Phoenixing Can Help Your Business Rise from the Ashes

Thursday, June 9th, 2011

If you have company financial problems and feel like your business is about to go under, all is not lost. There are still several options available to you to help you start again. Pre pack administration is now quite common practice and involves selling off all the assets of the company immediately after it has entered administration. This usually allows the business to continue trading under new management and often saves the jobs of those who are already working there.

Phoenixing is a form of pre pack administration whereby the directors of the original company start a new company and use it to buy the original company’s assets. This kind of company debt rescue ensures that a maximum staff can be retained as the management structure stays the same. The former company’s staff are also protected by TUPE law, so redundancies are minimised as much as possible. Obviously, it also allows you to keep trading, rather than watching someone else turn your business around and keep the profits. If you have spent time building a strong company brand, then you don’t want to lose this to somebody else. You can also remain in the same premises if this is financially viable for you.

If you think that pre pack administration or phoenixing sound like a practical way forward for your company, then Cooper Matthews can tell you all you need to know. With a free initial consultation, we will look at your business issues and discuss with you the best way forward.

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