At Lucas Ross – Business Rescue, Recovery & Insolvency, we understand that times can be tough and challenging, especially during the last year with the coronavirus pandemic. That’s why we want to explain how the winding up petition moratoriums can affect you and your business.
The extension of Winding up Petition moratoriums – Explained
The government halted creditors from proceeding with winding up petitions from 1 March 2020, this also halted existing winding up petitions.
This protective measure was implemented to help protect businesses in England and Wales, that would have permanently closed because of the coronavirus pandemic or that would have closed regardless of the current pandemic situation.
The extension was supposed to finish on the 30 June 2021. However It has been extended until the 30 September 2021.
Ultimately this means that now is the time to organise and seek professional Insolvency advice from Lucas Ross to help your business put their worries aside. We can help you and your business with financial distress.
How can Lucas Ross help you?
There are numerous ways Lucas Ross limited can help you, the first and foremost answer to help your company would be to arrange a Company Voluntary Arrangements (CVA). This can only be completed by a licenced insolvency practitioner, this means that company debts can be reorganised and placed within a mutual agreed payment plan whilst this CVA is active, all interest and charges would be frozen. Although this can only be approved and sanctioned if 75% of the creditors approve it.
Prepack Administration
Procedures for prepack administration processes are often the most easiest route to preserve value. This involves the sale of underlying business assets to a trade buyer or existing directors. This is a legal and robust way to sell a business on to a third party or a trade buyer. In order to issue a prepack administration process, the licensed insolvency practitioner needs to have great evidence that this would indeed be the best option for creditors to receive the most in returns. Although this option can only be done if a winding up petition hasn’t been issued.
Company Administration
Company administration is one of the last resorts to avoid company liquidation, which would result in the business closing down.
When going down the route of Company administration, the appointed liquidator would have a respite period of 8 weeks to come up with the best course of action to resolve the business distress. Such as starting the process of prepack administration.
What Next?
If you would like more information and advice on how WUP moratoriums can help or effect your business, then contact Lucas Ross – Business Rescue, Recovery & Insolvency today to speak to our team of specialist advisors for a free and confidential call.
Freephone: 03301289489
Email: help@lucasross.co.uk
