Please visit http://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Tuesday, 29 June 2010

Law firms feeling the heat?

Halliwells LLP faces administration: Hill Dickinson poised to take over its assets from BDO's Dermot Power as administrator. It is likely that there will be office closures and significant job losses.



Manchester based law firm Halliwells fails and faces administration owing RBS circa £20m.



I spoke at a R3 Conference series last autumn which examined Partnership insolvency. KSA was one of the first turnaround firms to propose a CVA for a Limited Liability Partnership law firm based in the south east.



That case was interesting for many of the same reasons as above: high secured debt to Barclays in this instance, property problems with too many expensive offices, too many people and falling sales.



See a case study here for a CVA for a LLP firm of solicitors

Friday, 25 June 2010

What if there was a way to just get rid of my dormant company simply and cost effectively"?

Voluntary Dissolution

There is and it could be useful for you. It's called voluntary dissolution and it can remove companies from the Companies House Register if certain conditions are met. Beware though you cannot use dissolution unless ALL of these conditions are met (see detailed guide below).

Providing you meet the conditions then this is a very useful and cost effective tool, AND there is no need to incur liquidation costs, no investigation into your directors' activity and little publicity.....


This process is also known as a voluntary dissolution. This is a provision in the Companies Act to allow the removal of the company from the Companies Register, typically when the company is dormant.

If the company serves no useful purpose, its dissolution removes the need for filing annual returns and accounts. But bear in mind that the company can only be dissolved (removed from the Companies House register), if the following conditions apply:

•The company has not traded for three months; this must be a genuine cessation of trade!


•The company has no assets or property or cash at bank.


•The creditors must be circulated requesting their permission for the company to be dissolved under this process.


•Creditors are given three months to consider the request to dissolve the company and can reject such request.


•The company cannot have changed its name in this period.


•The company may not have disposed of any property or assets (this may include land and buildings, plant and equipment, debtors and other assets).

Please note that paying off debts does not necessarily constitute trading, but for detailed advice on this and all other aspects of dissolution, please call on 0800 9700 539 for further advice.

Dissolution cannot be used if:

Any formal insolvency procedure is in place or proceedings have been commenced. Procedures such as a liquidation, CVA, Administration, receivership or compulsory liquidation under the Insolvencies Act 1986, or scheme of arrangement under the Companies Act 2006.

If any petition has been issued against a company (for administration or compulsory liquidation) then dissolution cannot be used.


Advantages of dissolution:

•It is a quick and clean removal of a dormant company from the Companies House Register.


•Dissolution avoids the costs of liquidation, fees and expenses.


•It avoids formal investigation into the conduct of the directors as required in liquidation or receivership.


Disadvantages:

•Creditors may reject the application; their permission is required to proceed with a dissolution.


•Any shareholder, creditor or liquidator can apply to revive the company for up to 20 years after dissolution.

Want to know more?

See here for the rest of this detailed guide to DISSOLUTION
Or call us now on 0800 9700539 and get some expert advice, we'll help you decide if you can dissolve it with our step by step programme.

Wednesday, 23 June 2010

Football crazy?

Looks like half the UK is going to be watching the football. Old Broad Street in the City of London normally teems with people at lunchtime, today's it remarkably quiet. I guess the pubs and wine bars are all hoping for bumper business.

If England win the champagne corks will surely be flying, if they don't? Well I suppose some will want to drown sorrows and analyse what went wrong!

The country's hostelries should do well regardless.

Anyway: Good Luck England!

Monday, 21 June 2010

KSA Liquidation Notice J&M Plumbing and Heating Ltd

Latest KSA liquidation notice Scottish company:

http://www.companyrescue.co.uk/insolvency-notices/jandm-plumbing-and-heating-limited-liquidation-notice

Scotland Liquidation.

Business insolvencies fall to lowest levels since January

Yet more evidence of the HMRC bail out, very low interest rates and the banks' support of struggling companies is found by today's statistics which show that the number of companies entering insolvency in May 2010 fell to the lowest level since January 2010.

The numbers, according to the latest Insolvency Index from information services company Experian reveal an 18% fall in the total number of business insolvencies during May compared to April, bringing the rate of insolvencies down to 0.08% from 0.10% in April.

Medium-sized businesses of 51 to 100 employees saw the rate of insolvencies fall from 0.24 per cent in April 2010 and 0.23% in May 2009, to 0.13% in May 2010 – the lowest point since September 2007.

Friday, 18 June 2010

KSA Group Insolvency Notices page

KSA liquidation cases listed this month:

June 2010

Seabug Limited

J K M Software Limited

Applied Gas Elect Limited

Alex Hill & Co Limited

D Jeynes Electrical Services Limited

Thursday, 17 June 2010

Portsmouth CVA approved but only just

See the BBC report here

http://news.bbc.co.uk/sport1/hi/football/teams/p/portsmouth/8746162.stm


"Needing the support of those owed at least 75% of the unsecured debt, Pompey's proposed Company Voluntary Agreement (CVA) (sic) got 81.3% of the vote.

The administrator will now press on with the plan to repay creditors at least 20p in the pound over five years.

The only real opposition to the CVA - a requisite for clubs hoping to avoid further points penalties - came from HM Revenue and Customs (HMRC), which has 28 days to appeal against the decision.

Any hopes of success HMRC might harbour will depend on its ability to convince the courts the public purse is owed considerably more than the £24m Pompey's administrators claim".


Had HMRC voted for its full £37m the CVA would have been rejected. It will be interesting to see if the HMRC Voluntary Arrangement Service mount a section 6 action (s6 Insolvency Act 1986) citing a material irregularity?

It has 28 days to do so.

What is an overdrawn directors current account? What happens to this loan in insolvency ?

In more than 75% of our enquiries from directors of struggling SME companies, we find that this is a major problem. So what is an "overdrawn directors current account"?

Well, usually the company is making some profits and your accountants advise the directors to save tax by paying the directors a small salary and then you take dividends from the reserves of profits made in the past and current years. So off you go taking money out of the business as instructed.

Then something goes wrong!

Although the advice is generally sound from a tax reduction perspective, when a company is performing well; it’s when things go wrong that directors can end up with serious personal liability problems.

See the rest of the guide here...

http://www.companyrescue.co.uk/company-rescue/guides/overdrawn-current-accounts

Wednesday, 16 June 2010

Accountancy firms in difficulty; numbers rise

Accountancy Age online has an interesting video on the issues affecting SME accountancy firms with financial problems.

Along with law firms, with around 4,000 firms facing closure, the number of professional practices facing cashflow problems is rising.

Top 20 Cost Cutting Tips for Your Business

Recovery in sight? Or double dip approaching? Whichever way we are headed, make sure that you keep business costs under control.

Our TOP 20 Cost Saving Rules and Cashflow Tips

We are still in or just emerging from a serious recession now in the UK, are you prepared? If not follow this guide and you will be better able to cope.

1.You must set up a daily cashflow to control all cash in and out; this my help protect you from wrongful trading, as it stops bounced cheques. If you don't have a daily cashflow forecast click here for your free copy or email Keith Steven keiths@ksagroup.co.uk now or call KSA on 0800 9700 539 FOR YOUR FREE DAILY CASHFLOW MODEL.

2). Click here for the next 19 tips

Tuesday, 15 June 2010

Good article on HMRC Time to Pay Deals

See here for a sensible article on time to pay deals and the requirement for independent business reviews for HMRC debts over £1m:

http://realbusiness.co.uk/finance_and_banking/time_to_pay_hmrc_tightens_vat_rules#comment_1378

As we have commented on the website in question, with large HMRC arrears, the use of a company voluntary arrangement is a very powerful solution.

Who will win the World Cup?

Answer the team that has been practising with the new Adidas Jubalani football for more than 6 months!

Which team is it???










Germany

Monday, 14 June 2010

FTI Consulting advises Vantis

News that FTI Consulting is advising the board of Vantis plc

Click the link above

Need to get rid of a dormant non trading company?

And don't know how to do it?

The Experts - Dissolve Your Company Programme.

Get our UNIQUE and BRAND NEW STEP BY STEP EXPERTS DISSOLUTION GUIDE.

Easy to follow guides, timetables, flowchart, board resolutions, checklists, letter templates and all the forms you need AND how to fill them in! Get an expert job done professionally without professional costs! Your accountants may charge you more than £250-750 for this service, so why not do it yourself and save money?

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call 0800 9700539 for orders over the phone or go to our online shop.

Is today the last day for Vantic plc?

RNS announcement at 8-15am today concerning Vantis plc

"Shares suspended pending clarification of the company's financial position"

This is usually a signal that the company in question is heading into administration or being purchased. I guess in this case the audit qualification by the company's auditors was the warning sign.

The news will flow later today probably.

Thursday, 10 June 2010

KSA Group Insolvency Notices Online

Please see our current June liquidation notices online at our web site
http://www.companyrescue.co.uk/insolvency-notices

Portsmouth City Company Voluntary Arrangement Proposals Attacked

Griffins the interesting insolvency firm that seems to pick over the carcasses of other insolvency firm's work to try and earn money, has criticised the administrator's proposals for a CVA for Portsmouth City.

Credit Today reports that an interesting spat has developed with Andrew Androniku (one of the the joint administrators) criticising Griffin's sums. They claim that Griffins forecasts are wrong and that Griffins' claim that a CVA could get 99p in the £1 for City's creditors was disingenuous, because they have included VAT in profit forecasts.

In any event, the creditors meeting for Portsmouth's CVA promises to be a stormy affair, if HMRC votes against the proposals for a CVA, as it has said it will, then there is a chance of the CVA being rejected.

Watch the news if that happens, this could lead to a rejected CVA, a sale or liquidation, plus a big points penalties for Portsmouth (as happened to Leeds Utd) and the club face starting the season on minus 15-20 points.

All this will be slap bang in the middle of the World Cup.

Tuesday, 8 June 2010

New Liquidation guide page

See our new simple to follow guide page on liquidation here

http://www.companyrescue.co.uk/company-rescue/options/creditors-voluntary-liquidation

New UK Government Bans HIP's. Are you running a HIP business?

Over the last couple of weeks we have seen a number of Home Improvement Pack consultancies that no longer have a business model. With the Government banning the use of HIP's, we are being asked to liquidate these non viable companies.

Are you running a HIP business as part of your company's activity or as the only activity? Please call Carol Webster on 0800 9700539 or Wayne Harrison (insolvency practitioner) on 07879 555350 for solutions. We will sympathetically get these problems dealt with and let you get on with your life.

Begbies Traynor sees flat insolvency sales

Group expects higher profits are likely in current half year due to cost cutting measures that cost £800,000 to implement.

In a reflective press release, Begbies Traynor said that it “remains confident that the number of corporate insolvencies will rise as the economic cycle develops, consistent with historical patterns for insolvencies to lag the cycle.

“However, in the short term, we anticipate a continuation of the work volumes seen in the second half of the year ended 30 April 2010”.

With the Time to Pay Scheme (or the Business Payment Support Service) still providing support to hundreds of thousands of companies and small businesses, Begbies optimistic forecast for corporate insolvency rates may be thwarted by the Government's continued support for the BPSS?

Thursday, 3 June 2010

Football Creditors Rule - HMRC issues Writ

HMRC seeks courts views on the controversial football creditors rule. if a football club enters insolvency the league rules require the club to enter a company voluntary arrangement (CVA).

The CVA MUST pay football creditors in full, this includes footballers, agents and the leagues, otherwise the league will not admit the club to the league and withhold the licence.

This ransom creditor approach has always annoyed HMRC as the tax man and "ordinary unsecured creditors" receive modest or small dividends, whilst rich footballers get paid in full.

Seems inequitable?

Well the courts have yet to find in HMRC's favour.

With Portsmouth's CVA now in the public domain, the football creditors rule once again sees HMRC get a tiny dividend. Will this writ be successful or will HMRC mount a section 6 (s6 Insolvency Act 1986) action when the Portsmouth CVA is approved?

Wednesday, 2 June 2010

Which planet does the Unite Union live on???

With the introduction of new technology, Government owned RBS says it will cut 500 jobs over 3 years through natural wastage, i.e. no compulsory redundancies. That's good then? Sensible business investment planning then?

Not on planet Unite....

Reports BBC's news site

"RBS, which is 84%-owned by the taxpayer, says it is investing in new back-office technology which means it will need fewer staff.

But the Unite trade union said it did not disagreed (sic) with the move.

Unite's national officer Rob MacGregor said: "Unite does not believe that the introduction of and investment in new technology should go hand in hand with the shedding of jobs." "

What should the bank do, invest in new technology and then keep employing 500 people playing cards whilst being paid effectively by the tax payer?

You seriously have to pinch yourself and ask are these Union leaders people for real?

Oh I forgot, they get paid huge sums of money for doing very little but making stupid comments to the media, nice work etc

Tuesday, 1 June 2010

Liquidation for Crystal Palace Football Club?

Crystal Palace has been in administration for several months. The club's ground is owned by Bank of Scotland which seems to have a different view as to the future value of the ground if developed, than that held by the ONLY prospective purchaser of the club.

If no buyer can be found the likely fate of the club is voluntary liquidation. After that, extinction as the club will be expelled from the Football League.

The club's administrator Brendan Guilfoyle admitted he was "genuinely concerned" about the liquidation threat and said if a deal was not reached he would have to start selling Palace's best players.

The statement from the buyer (CPFC 2010): "We are trying to acquire both Crystal Palace Football Club and Selhurst Park.

"Everyone would agree Selhurst Park is pivotal to the long-term future of the club and CPFC 2010 have always made it clear they will not proceed without securing it.

"We reached what we thought was an agreement with Bank of Scotland, who are the major creditor of Selhurst Park Ltd.

"Subsequent to this agreement we have been sent a contract that does not reflect this agreement and is unworkable."

The sticking point in the negotiations appears to be over how much money the bank would receive if Selhurst Park was resold in the future.

Bank of Scotland has agreed to sell the ground to CPFC 2010 for a price lower than what a property developer may be prepared to pay but has asked for a share of any profit if it was sold again.
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