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Corporate Recovery & Licensed Insolvency Practitioners.
We providing a full range of turnaround, insolvency and business advisory services.

Corporate Insolvency


A company facing financial difficulties and facing pressure from creditors can be placed into administration. An administration is a court procedure and gives a company protection from its creditors whilst it reorganises its financial affairs.
An insolvency practitioner is appointed as administrator to take control of the company.  An administrator may be appointed:

  • By an order of the court on application by the company, the directors or one or more creditors
  • Without a court order by the company, a directors or a creditor who holds a floating charge over the assets of the company.

In many cases, Redmans Insolvency Services can secure an administration proceeding for a company in a matter of hours, thus giving a company almost immediate protection from creditors.
When appointed, the administrator will liaise with the existing management of the company to formulate an achievable business recovery or restructuring package with the following objectives in mind:

  • Rescuing the company as a going concern, or; if that cannot be achieved;
  • Achieving a better result for the creditors as a whole, than would be likely if the company were wound up (i.e. liquidated) without first being in administration or; if that cannot be achieved;
  • Realising property of the company in order to make a distribution to secured or preferential creditors.

To achieve these objectives, the administrator has the power to carry on the business of the company and realise its assets.
The administrator will prepare a proposal for achieving the objectives of the administration and this will be presented to the creditors for their approval.

The administration must be concluded within one year, although this can be extended with the permission of the court or creditors if more time is needed to achieve the purpose of the administration.
On conclusion of an administration:

  • The company may be returned to the control of its directors
  • The company may go into liquidation
  • The company may be dissolved

Company Voluntary Arrangement

A Company Voluntary Arrangement (CVA) is a legal process which gives the directors of a company in financial difficulties protection from its creditors. The company makes a proposal to its creditors (and shareholders) to compromise or settle its debts either in whole, or in part and usually over a period of time.

The proposal is a contract between the company and its creditors and shareholders. Once it has been approved by the creditors and shareholders, creditors cannot take proceedings against the company for the recovery of their debts.
Our associate can act as nominee and assist the directors of a company in putting together a proposal.
Meetings of creditors and shareholders will be held in order for the proposal to be voted on by those persons. If 75%, or more, by value, of the creditors (and 50% of the shareholders) approve the proposal, the proposal will be deemed approved.
The implementation of a CVA will give the company an opportunity to restructure and return to profitability to enable it to repay its creditors from future profits.

Once the proposal is approved by creditors and shareholders of the CVA, the insolvency practitioner who acted as nominee usually becomes the supervisor of the CVA, whose functions include ensuring that the company complies with its obligations under the CVA and paying dividends to creditors.

Typically, a CVA will last between 3 to 5 years. If the company fails to comply with its obligations under the CVA, it is likely that the supervisor will petition for the company to be placed into liquidation.

Members’ Voluntary Liquidation

A members’ voluntary liquidation (MVL) is a process in which the directors of a solvent company can appoint a liquidator to realise the company’s assets, pay the company’s debts in full within 12 months and then distribute the remaining assets of the company to the shareholders to enable them to realise their financial interest in the company.
Members’ voluntary liquidations are normally entered into by shareholders for tax purposes.

Administrative Receivership

An insolvency practitioner can be appointed as administrative receiver by a lender when a company defaults on the terms of its borrowing. That lender must hold a floating charge over the whole, or a substantial amount, of the company’s assets.
The administrative receiver will carry on the company’s business in order to realise the assets comprised in the charge to repay the secured and preferential creditors.
It is not possible for a lender to appoint an administrative receiver under a security instrument created after 15 September 2003. This is part of the government’s drive to encourage the use of administrations in place of administrative receiverships.

Compulsory Liquidation

Compulsory liquidation occurs when an insolvent company is wound up by an order of the court, usually after the company has failed to comply with a statutory demand requiring payment of a debt within 21 days.
The court will issue an order on petition by a creditor, the company itself, or a shareholder. A winding-up petition may also be presented by the Secretary of State for Trade and Industry on the grounds of public interest.
The official receiver then acts as liquidator. The official receiver has 12 weeks in which to decide if there are sufficient assets to appoint a licensed insolvency practitioner as liquidator.

Creditors’ Voluntary Liquidation

Creditors’ Voluntary Liquidation (CVL) is the most common insolvency procedure for an insolvent limited company and is the mechanism for a formal winding of a company’s affairs.
The shareholders and/or directors of a limited company may realise that the company is insolvent since it cannot pay its debts as they fall due or it has more liabilities than assets. They will then contact a licensed insolvency practitioner with a view to assisting them to place the company into a CVL.
A CVL involves a licensed insolvency practitioner being appointed as liquidator, at the director’s request, at a meeting of shareholders and creditors. In the first place, the shareholders nominate a licensed insolvency practitioner to be the liquidator, who will act as such, unless the majority of the creditors wish another licensed insolvency practitioner to act as liquidator instead.
At the meeting of creditors, creditors can also appoint a liquidation committee, comprising of between three to five creditors, whose function is to oversee the liquidation on behalf of the general body of creditors.
The liquidator, in addition to his statutory investigative duties, will realise the company’s assets and distribute the proceeds to the creditors. Upon the conclusion of the CVL, the company will be dissolved.

Advice to Creditors
Advice to Directors
Corporate Insolvency
Personal Insolvency

Creditors have certain rights in all types of insolvency procedure.

If you are a director of a company which is being threatened by pressure A company facing financial difficulties and facing pressure from creditors An Individual Voluntary Arrangement (IVA) is an opportunity to avoid bankruptcy
Redundancy and Insolvency
Our Fee Structure
Provision Of Services

Redundancy is generally where an employer needs to reduce

Redmans Insolvency Services’ policy in respect of fees and expenses for work in relation to insolvency appointments. All insolvency practitioners are required to comply with the Insolvency Code of Ethics and a copy of the Code
For further information, or to arrange a free initial consultation, please contact in the first instance Hasmukh Pattni,
who will be pleased to help you. Call Hasmukh Pattni now: 020 8426 2400 or email:
Guide to Liquidator’s fees
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Liquidations A creditor’s guide to insolvency practitioners fees

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