Insolvency & Advisory

Our main aim is to steer the business back to success.

All businesses – large or small – experience difficulties at various stages throughout their business cycle. Such difficulties can be the result of external or internal pressures, likely triggered by today’s difficult economic climate. Examples of these pressures include debt and cashflow problems.

The first step to rescuing a business is recognising that a problem exists. From that point, it is crucial to gain early advice from an expert.

At Shaw Gibbs, we can help by:

• Talking and listening to management to understand the business and identify areas of concern.
• Formulating a plan that tackles the problem(s) and
• Working together with management and other stakeholders to implement the plan of action.

We understand that situations change so we can remain involved to monitor the effectiveness of the plan and help with modifications if needed. Many options are available to us including; Debt restructuring, Negotiation with all stakeholders, Cash flow stabilisation, Reorganisation and management reviews.

We are also able to act where a formal Insolvency solution in required including Administrations and Company Voluntary Arrangements.

Sometimes it just isn’t possible to rescue an ailing business. As a Director, it may seem that problems are insurmountable but there are solutions. We can guide directors of financially distressed companies in the direction of various options and help you evaluate the best solution.

Our approach is to provide integrated advice along with a range of conventional and more innovative solutions including:

• Administration (to achieve a better realisation for creditors than liquidation)
• Liquidation
• Negotiated settlements with creditor

Personal debt problems are stressful and debilitating, but there are options available. When seeking available options, it is paramount to gain the correct advice from experienced professionals who not only understand the regulations and law but also know the practical impact of the options available.

We can advise on:

• Bankruptcy may be an unavoidable outcome, but for many it is the right solution. Whilst at first this procedure appears daunting, to most people the anxiety they have endured in the months leading up to this is far greater and more stressful than the process of bankruptcy itself, and the aftermath far less stressful than anticipated.
• IVA’s (Individual Voluntary Arrangements) may be the best way forward. A legally binding agreement that allows an individual to reach an agreement with creditors on how to use their assets and future income in settlement of unsecured debts, often for a discount or element of debt forgiveness.
• Debt negotiations with creditors can achieve a better outcome for both the individual in debt and their creditors.

At Shaw Gibbs, we have the expertise and experience to advise you on all of the options available to you.

In addition to accepting appointment in formal Insolvency procedures we have decades of experiences of helping clients in a number of circumstances including:

• Assisting in restructuring options & procedures.
• Attending board meetings to advise directors of distressed companies of their duties and responsibilities and act as non-executive directors.
• Negotiating with creditors on an individual’s/company’s behalf.
• Assisting company directors with claims against them arising from insolvent companies.
• Undertaking viability reports/independent business review on behalf of investors, institutions and directors.
• Attending creditors’ meetings on behalf of the creditors with a view to maximising returns, and in some instances being appointed in an official capacity.

The Insolvency Practitioners at Shaw Gibbs are authorised by the Insolvency Practitioners Association (IPA) and the professional Association for Property & Fixed Charge Receivers (NARA) to act as Liquidators, Administrators, Trustees in Bankruptcy, Supervisors of Company or Individual voluntary arrangements and LPA Receivers.

For both directors and creditors of a distressed business, the jargon surrounding insolvency, financial distress and rescue can be confusing and complex. At Shaw Gibbs, we have an experienced team who understand not only the formalities of the process but also the practical issues and can guide those involved in the correct direction to maximise recoveries for creditors.

We can advise and act for both Individuals and Creditors in bankruptcy situations.

• For Individuals

  Bankruptcy may be an unavoidable outcome, but for many it is the right solution. Whilst at first this procedure appears daunting, to most people the anxiety they have endured in the months leading up to this is far greater and more stressful than the process of bankruptcy itself, and the aftermath far less stressful than anticipated. We can assist with the necessary paperwork required to petition the court for a bankruptcy order or steer you in the right direction if a ’Debt Relief Order’ is appropriate.

• For Creditors

  The knowledge that a debtor has been declared bankrupt is often considered as the end of the road in recovering a bad debt. It may however be the start of a new journey, involving; investigations, recovery of assets and payment of funds to creditors.

  Notice of a bankruptcy should be considered as a ‘call to action’ to involve an Insolvency Practitioner. At Shaw Gibbs, we will research the circumstances of the bankruptcy and report to creditors on the prospects of recovery. If appropriate, creditors may also be able to get one of our Insolvency Practitioners appointed to oversee the process and ensure that creditors recover as much of their debt as possible.

On behalf of creditors, we can act for and advise on receipt of formal notices of insolvency and where appropriate, accept appointment as the professionally qualified practitioner to deal with the insolvent individual or company including:

• Administrator;
• Liquidator;
• Supervisor of voluntary arrangements;
• Trustee on bankruptcy;
• Law of Property Act Receiver

In addition to formal procedures, we can also:

• Attend meetings of creditors on your behalf with a view to maximising your returns,
• Assist with monitoring case progress where an Insolvency Practitioner is already appointed
• Liaising with the proposed Insolvency Practitioner to determine likely recoveries

If you receive any notices regarding insolvency proceedings, contact one of our team immediately as there are very strict time limits for responses.

Directors / Trustees have many duties and, when dealing with a Company / Charity under their control suffering financial distress, their duties increase.

In such circumstances, Directors/Trustees are acting as quasi-trustees for the creditors and have a duty of care to not only the shareholders of the Company but also to the creditors. The Insolvency Practitioners at Shaw Gibbs are able to advise Directors/Trustees in this ‘twilight’ zone and also assist them in the event that they are challenged by a Liquidator / Administrator or the subject of disqualification proceedings after an insolvency.

There are a number of reasons as to why a business may come to the end of its natural life, including; retirement of shareholders, project completion or the development of a new product. Whatever the reason, the shareholders/directors may wish to close a company and extract the remaining value in the most cost effective and tax efficient manner possible.

If the business is able to meet all its liabilities, a solvent liquidation (Members Voluntary Liquidation) may be the appropriate course of action.

We can help by:

• Assessing the overall situation;
• Assisting with due diligence to make sure all loose ends are brought to a close;
• Liaising with other professionals (e.g. accountants and solicitors) to maximise value;
• Handling the formalities of a solvent liquidation
• Tax efficiently distributing the value of the company to its shareholders

When planning for such an exit early planning is advisable and we are always happy to meet with directors well in advance of the likely date of cessation of activities to help in the maximising of value for shareholders.