Helping businesses alleviate financial difficulty
The effect of the coronavirus is being felt by economies globally and on a day-to-day basis businesses are already experiencing issues. We work closely with companies, directors and stakeholders advising on restructuring and rescheduling of debts, discussing duties and liabilities and if necessary implementing formal procedures.
Insolvency and restructuring issues you may want to consider include:
- Solvency/cashflow monitoring
- Wrongful trading
- Directors’ avoiding personal liability on insolvency
- Debt and equity restructuring (externally and within group structures).
If you are having issues with cashflow, the Government has also implemented a number of emergency measures in the tax system to help businesses. You can read more about those here.
Insolvency issues for directors05 November 2020
All directors owe duties to their companies. However, once a director knows or should know the company is (or is likely to become) insolvent, creditors' interests become paramount. In practical terms, this means that the nature of directors’ duties undergoes a significant shift when insolvency threatens.
The Future Fund: can it be both a success and a failure?29 May 2020
The UK Government opened its Future Fund for applications on 20 May. It is widely reported that on the first day applications for its matched funding exceeded £500m. These applications are to be processed and, if successful, funds are to be released within 21 days. This all sounds impressive, but there are siren voices. Why is that?
Reducing business costs - alternatives to redundancy28 May 2020
When businesses run into financial difficulties and need to reduce costs, the knee-jerk reaction is often to consider the scope for job cuts.
Financial support for SMEs: The Coronavirus Business Interruption Loan Scheme (CBILS)07 May 2020
Government-backed loans of up to £5 million to small and medium businesses
Financial support for SMEs: the Bounce Back Loan Scheme (BBLS)04 May 2020
100% Government-backed loans of up to £50,000 for small and medium businesses
Her Majesty’s Government enters the VC market24 April 2020
The UK Government is now to become the latest VC to provide finance to start-ups, but what are the terms of this support? Is this finance likely to be useful or are those terms overly punitive? Will this impact on the terms available from existing investors? We analyse this below.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)22 April 2020
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) opened on Monday 20 April 2020. It provides financial support to mid-sized and larger UK businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak.
What is a convertible loan note? Future Fund scheme explained: Timothy Leeson writes for Growth Business21 April 2020
The government's £500m Future Fund offers up to £5m to growth companies through convertible growth notes. In this article for Growth Business, Timothy Leeson explains the pros and cons of convertible loan notes.