Liquidate Your Company. The Best Way Forward.
18/01/2018 | Insolvency
"I’LL HAVE A LIQUIDATION PLEASE…"
By Tim Corfield
I received a call from a director, Terry, who had been recommended to call us because his company was insolvent and facing creditor pressure "I need you to liquidate my company." Terry told me. Liquidate your company I thought, is this going to be the right thing to do?
After a quick telephone chat I arranged to see Terry the following morning. The company had been operating in the construction industry and had now ceased to trade. The trade creditors amounted to around £25,000. There was little other debt.
I asked Terry if he’d provided personal guarantees to the creditors. He said “no” but I doubted whether that was the case and I told him I needed to review the paperwork before I was prepared to proceed. The next day, after Terry had made further enquiries and reviewed the credit terms of the suppliers, it became clear that he had provided two personal guarantees to his major suppliers which accounted for around £23,000 of the debt.
Liquidate Your Company – Creditors Voluntary Liquidation or Compulsory Liquidation?
"What’s the point in you paying me to liquidate your company if you could do with that money to go towards making an offer and settling with your creditors?" I said. So, Terry and I agreed to let the creditors take further action against the company if that’s what they wanted to do. In the meantime, Terry approached the creditors to whom he had provided personal guarantees to make an offer to settle.
Terry has now agreed a deal with his two major suppliers and settled the personally guaranteed debts for around £10,000. He’s got a job with a local competitor and a winding up order was eventually made against the company.
"I’ve had a few sleepless nights but without Tim’s guidance I’d have stumbled from one mistake to another. Griffin & King have helped me prioritise the problems I’ve been faced with and I have ended up with the best solution possible" Terry said.
If you are having financial difficulties with your business or you need further advice on how to liquidate your company please get in touch with me, Tim Corfield, or Mark or Janet on 01922 722205 for a free, confidential chat – we will be able to help!
Griffin and King are Licensed Insolvency Practitioners with offices throughout the UK.