Updated: 15th August 2018
The Company had relationships with some national house builders as well as smaller Companies. They had experienced cash flow issues due to slow paying debtors and this meant that they had fallen behind significantly with HMRC, the Bank was overdrawn and the Directors had invested some funds.
The Company had work in the pipeline with existing contacts and could be profitable without the historic debt.
We reviewed all of the options available and the Directors felt that the most suitable option was to place the Company into Creditors’ Voluntary Liquidation and buy back the assets and goodwill.
In doing so, the Directors offered to collect the debtors as they had the continuing relationships with the clients which meant that the debtor realisations were maximised. It also meant that the employees all kept their jobs.
The Directors had the support from the Landlord, who agreed to assign the lease to the new Company and also the support from the clients going forward.
Martin joined Begbies Traynor in August 2019 as a Partner at the Leicester office as part of an expansion of the office.
Martin has worked in the insolvency sector for more than 25 years and qualified as a Licensed Insolvency Practitioner in 2003. Prior to joining Begbies Traynor he was a director of an independent insolvency firm in Leicestershire taking formal insolvency appointments in relation to both corporate and personal insolvency assignments and has spent his career providing practical advice to owners of SME businesses across a wide range of sectors.