Simple Liquidation blog

There is no denying that if your company receives a winding-up petition, this isn’t something that can just be ignored. A winding-up petition is a serious statement of intent which has been sent by a creditor and threatens to shut down your company because you have debts which are yet to be paid. If a winding-up petition goes through then the company will be closed via the liquidation route. This is serious as it is the strongest action that a creditor can take against your business. As such, company directors must be up to speed with what the petition is and what they should do if they are faced with one.  If you and your company are served with a winding-up petition then you should be aware that this is one of the most serious pieces of legal action that a creditor can take against you. If you don’t do anything about it then the petition states that there are a series of events that will stop your company from being able to trade and will eventually result in the winding up of your c

Thanks to years of economic and political uncertainty brought on by the pandemic, issues with the market, and general malpractice in government, it is an incredibly hard time for a variety of different businesses. It doesn’t matter whether an organization is big or small, there are common problems that are being encountered and these are leading to organizations having to close down. One of the most recent of these businesses is the Belgian coffee chain, Le Pain Quotidien. Recently it was announced that the Belgian coffee house has collapsed into administration. Londoners were no strangers to the coffee house as there are 10 different sites across London and Oxford. All of these are now set to close down except for the one which is located in St Pancras Station, likely because of the amount of foot traffic it sees and also due to the fact it is owned by a sister company, SPQ Limited, which has not been impacted by the administration. All of the stores closed at the back end of June as

  A Members' Voluntary Liquidation (MVL) is a process used by solvent companies in the United Kingdom to wind up their affairs and distribute their assets to shareholders. The duration of an MVL can vary based on several factors, including the complexity of the company's affairs, the cooperation of stakeholders, and the efficiency of the professionals involved in the process. Generally, the timeline for a MeMember's voluntary liquidation in the UK can be outlined as follows: Preparation Phase: Before initiating the MVL, the company's directors and shareholders need to make the decision to wind up the company's affairs. This involves obtaining professional advice from an insolvency practitioner or a licensed liquidator to determine if the company is indeed solvent and eligible for an MVL. The necessary documentation, including a Declaration of Solvency, needs to be prepared and signed by the directors. Appointment of Liquidator: Once the Declaration of Solvency is si

A number of different people are involved in the running of a company and the same can be said for the closing (or potential closing) of a company as well. A fundamental role in the closing of a company is that of a corporate insolvency practitioner. Insolvency practitioners are professionals who are appointed to act on behalf of companies (and also individuals) when they are in acute financial distress. It is their responsibility to become familiar with their client and their financial position in order to understand the situation they are in and provide support throughout the liquidation process so a fair outcome for both the creditors and the company can be achieved. The court is responsible for appointing corporate insolvency practitioner who needs to deal with either a company or an individual who is unable to pay their debts. Insolvency practitioner has the authorization to act as they have powers appointed to them by the Insolvency Practitioners Association. They have gone throu

Bankruptcy and defaulting are financial terms that indicate different forms of financial distress, applicable to both private entities (individuals and businesses) and sovereign nations (countries). While both situations involve an inability to meet financial obligations, they have distinct implications, legal frameworks, and consequences. Bankruptcy for Private Entities: Bankruptcy is a legal process through which individuals or businesses can seek relief from overwhelming debts they cannot repay. It allows debtors to reorganize their financial affairs or, in some cases, have their debts discharged (eliminated) under court supervision. Bankruptcy is usually initiated voluntarily by the debtor, but creditors can also file for bankruptcy if the debtor is unable to meet their obligations. There are different types of bankruptcy, the most common being Chapter 7 and Chapter 13 in the United States: Chapter 7 Bankruptcy: Also known as "liquidation bankruptcy," this involves the s

 How to Make Informed Decisions with the Bounce Back Loan Calculator and the UK Government’s Pay as You Grow Options The Bounce Back Loan (BBL) scheme was a government-backed loan scheme introduced in 2020 to help small businesses in the UK during the turmoil of the COVID pandemic. In addition to the standard Bounce Back Loan terms, the UK government also introduced the Pay as You Grow (PAYG) options in September 2020. These options give businesses more flexibility in how they repay their Bounce Back Loans. NOTE: Whilst the Bounce Back Loan scheme is no longer available, the PAYG options can still be used to repay Bounce Back Loans that were taken out before the scheme closed The scheme was open to businesses with a turnover of up to £50 million, and loans of up to £50,000 were available. The interest rate on BBLs was 2.5%, and there were no fees or interest to pay for the first 12 months. After 12 months, the interest rate would increase to 6.3%. The knock-on effect of the pandemic on

 Bounce Back Loan Calculator: How to Calculate Accurately The Chancellor, Rishi Sunak, announced a series of financial measures in 2020 to help businesses through the coronavirus pandemic. One of those initiatives was the Bounce Back Loan which was launched in April 2020. It allowed small and medium-sized businesses to borrow up to £50,000, depending on turnover, at a very low-interest rate. As well as being guaranteed by the Government, businesses, and organizations didn’t have to start paying back the loan for 12 months. From that point, payments are made over a six-year or extended to a 10-year period if they were still struggling financially. However, calculating how much your monthly repayments will be has caused some confusion among business owners/directors. Whilst there are no arrangement fees added to the loan figure, and the interest rate charged is low for the duration of the loan, many hadn’t included the Business Interruption Payment (BIP) figure. This is the sum of money

 The Impact of Insolvency and Liquidation on Small Businesses in the Uk Many businesses face challenges, and these challenges vary depending on what market that business operates in and what the market is like currently. Usually, businesses can overcome various challenges; however, this isn’t always the case, and some organizations enter insolvency and have to go into liquidation. The question is, what do these two terms actually mean, and the impact of Insolvency and Liquidation on Small Businesses? All will be discussed in more detail throughout the below article. When a business becomes insolvent, it means that an organization cannot pay the various debts they owe as they fall due. This can happen in two different ways, but both can happen at the same time. The first form of insolvency is cash-flow insolvency, where a business simply doesn’t have access to enough money to pay off its debts. This is easy for businesses to fall into but, similarly, it’s easy to get out of. Many busine