Posts Tagged ‘creditors’
How to Protect Customer Deposits Without New Legislation
Britain must have new legislation to ensure cash from deposits and voucher sales is returned to customers when a retailer goes into administration, according to the Institute of Chartered Accountants of Scotland (ICAS). The call follows the recent insolvencies of retailers such as music chain Zavvi and furniture supplier MFI where customers lost cash paid…
Read MoreOffice of Fair Trading’s Insolvency Recommendations are Long Overdue
Last month, the Insolvency Service released a review paper on the regulation of insolvency practitioners (IPs) and asked the public for feedback. The consultation, which can be read here, follows an Office of Fair Trading (OFT) investigation into corporate insolvency and practitioner fees. The investigation found inconsistencies in the way complaints about IPs were handled…
Read MoreRemedies for Struggling Directors: CVAs and Renegotiating with Creditors
Company directors experiencing financial difficulties often consider terminating agreements and contracts to reduce the burden of their debts. A director in this position must avoid delaying decisions and rectify the situation as soon as possible; otherwise the business will experience a rapid decline in trade and become insolvent. Reducing staff and rented equipment will lower costs,…
Read MoreCreditors Voluntary Liquidations Will Be Popular in 2011
Thousands of struggling company owners will voluntarily close their businesses this year, and most of those that do will use a Creditors Voluntary Liquidation (CVL) process. A CVL is perhaps more popular than a Compulsory Liquidation as it allows directors to put a company into liquidation with their shareholders’ approval and permission from creditors. If…
Read MoreAlways Read the Small Print of Finance Agreements – the Devil’s in the Detail
Over the past year, Yorkshire businessman Keith Elliot has launched a campaign to highlight what he claims are unscrupulous banking practices. A few years back, Elliot’s car business, Premier Motor Auctions, ran into trouble so he arranged a pre-packaged deal with accountants PwC for his bank, Lloyds TSB, to purchase a 15 per cent stake…
Read MoreWinding Up Petitions Are the Way Forward for Creditors
In recent years, it has become popular for creditors to issue winding up petitions as a method of debt recovery. It’s something I’d recommend simply because debt recovery laws in the UK are toothless; they don’t bite. If a company owes its creditors money, the creditor will go to county court and get a county…
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