Time to Pay Arrangements

As the director of a company which is failing due to unmanageable amounts of debt, you may be considering liquidation in order to start a new business, without the worry of outstanding debt, poor reputation and unhealthy relationships with creditors.
You may have tried to rescue your business by seeking alternative finance such as invoice factoring to meet immediate cash liabilities, sourcing investment to raise capital or applying for a bank loan/overdraft. Due to debt levels and low cash flow, this may be difficult to secure as your business poses a higher risk of non-payment.
In the event of liquidating a company with debts and establishing a new company, there are a few restrictions which should be taken into consideration. This is to prevent company directors starting a new company in order to escape debt and the consequences. A new company which emerges from the liquidation of an old company with the same assets and typically the same directors is known as a phoenix company.

Ensuring the most appropriate way forward is chosen to maximise returns and minimise loss to creditors when a company is insolvent is paramount. Acting swiftly helps shield creditors from further losses as well as protecting the personal position of directors and shareholders. Dealing with an insolvent company comes with its own additional suite of responsibilities and obligations underscoring the need for the support and guidance of a reliable, trusted advisor.

With businesses across the country facing challenges like never before in the wake of Covid-19, many companies are finding themselves in desperate need of outside funding as income takes a hit.
In response to this need, the government has introduced a new funding initiative known as the Coronavirus Business Interruption Loan Scheme − or CBILS for short.