Options for a profitable but insolvent company

Business rescue options for directors of struggling companies…

As reports of company insolvencies come streaming in, it’s important for directors to weigh up business rescue options in advance.

Panicking and making rash decisions under pressure could lead to a tragic , but wholly avoidable outcome. It is important to note that liquidation is not the only option available to you.

One alternative is to place the struggling business into a company voluntary arrangement (CVA). This is probably the best business rescue option for companies that have good prospects but are loaded with historic debt. CVAs allow a company to bargain with its creditors whilst still operating.

Alternatives to liquidation

Directors retain customer contacts and control of the daily running of the business. Additionally, the director(s) may work out a deal to pause some debts while the company finds new investment. However, CVAs are only possible if creditors are in agreement.

Placing the company into administration is another possible option. Administration shields your company from creditors who want to:

  1. Wind up the company
  2. Take further legal action

Administration offers a great opportunity to turn things around because saving the business is one of the primary goals of this procedure.

CIGA 2020

Additionally, the Corporate Insolvency and Governance Act 2020 (CIGA 202) introduced a moratorium procedure and restructuring plans.

According to the House of Commons library, the restructuring plans will “…help viable companies struggling with debt obligations. Courts can sanction a restructuring plan (that binds creditors) if it is ‘fair and equitable’. Creditors vote on the plan, but the court can impose it on dissenting creditors”.

Email [email protected] for guidance on your business rescue options. Our advisors are more than happy to assist during what can be a stressful time.

Posted in
the 79th group

The 79th Group Update-What You Need To Know

05/05/2025

Administrations, Court Cases, and What Loan Note Holders Must Know Now The financial collapse of companies within The 79th Group is rapidly entering a critical…

Read More

T&T Trustees Appoint Administrators to 79th Luxury Living Six

25/04/2025

Are Investor Interests Being Protected? A New Twist in The 79th Group Saga Loan note holders in 79th Luxury Living Six Ltd (LL6) were recently…

Read More
the 79th group

A Difficult Truth: The 79th Group’s Latest Statement

17/04/2025

On 10 April, The 79th Group issued a public statement in response to the ongoing investigation by the City of London Police, which can be…

Read More
the 79th group

The Cold Truth About The 79th Group, the Police, and Your Money

11/04/2025

The 79th Group Loan Notes Recovery Over the past several months, a growing number of investors have come forward, alarmed and confused by what’s happening…

Read More