When a company is in financial difficulty the company’s directors face new and unexpected challenges. Instead of looking after the company’s shareholders the directors are now accountable to the company’s creditors. This can mean that the directors face the real possibility of personal liability for their actions if creditors are ultimately not paid in full.
At a time when the company may be short of cash to pay even its daily bills the directors may struggle to know where to find the help and advice they need.
Here at Bennett Jones Insolvency you can rely on professional advice from licensed insolvency practitioners to help steer and guide you through difficult times. It is important at times like this to remember you are not alone as a director managing your company as it suffers from financial stress.
Speak to us in confidence and we will look to offer you the best solutions for your company’s circumstances. Options you may consider are:
- Informal help and advice in dealing with creditors during a temporary period of cash flow difficulties
- Company Voluntary Arrangement
- Pre pack Administration
- Creditors Voluntary Liquidation
If matters have reached the stage that a compulsory winding up petition has been issued or bailiffs have attended the company’s premises we can still provide positive advice and assistance. Many companies facing a winding up petition still end up choosing an alternative solution and the companies’ creditors accept that the alternative solutions which are chosen are likely to result in a better outcome for them.
Common issues facing directors of companies in difficulty are: