Reviewed: 14th July 2017
Consultants in the engineering industry are experiencing high levels of financial distress, particularly in the nuclear sector where a significant number of redundancies are causing serious debt issues.
Additionally, engineering firms within oil and gas supply chains have been severely affected by the industry’s slump, which when combined with market unpredictability and the increasing costs of operation, has resulted in widespread insolvency and business closure.
Reduced investment levels in oil and gas, caused by a drop in the price of oil, has made it too expensive for many firms in this industry to operate effectively. With numerous engineering consultancies involved at various levels throughout a supply chain, the ensuing drive to reduce costs and increase efficiency has caused severe job losses.
Controlling such a severe debt situation is challenging for these firms, and extremely stressful for individual consultants, but there are options available that can help companies regain their financial footing.
Furthermore, nuclear engineering in the UK is currently facing a crisis as Toshiba withdraws from the Moorside new nuclear facility development in Cumbria – the organisation is suffering its own financial crisis following the bankruptcy of one of its US subsidiaries.
The immediate future for the UK’s nuclear industry remains in doubt, with job losses and potential insolvency being the result for engineering firms and their staff. So how can engineering company directors deal with a seemingly untenable position and either rescue their business, or limit losses for themselves and their creditors?
Insolvency advice is crucial at the earliest stage of decline. Insolvency practitioners (IPs) with specific experience in engineering understand the industry’s challenges, and aim for company rescue if the underlying business is viable.
Our licensed insolvency practitioners at Real Business Rescue will establish the severity of your situation. Our principle goal is always business rescue, and we may be able to effect this in a number of ways:
Here are a few of the options that may be open to you to stabilise your current financial position:
HMRC provides extended time to pay tax and National Insurance arrears for some businesses.
You ultimately remain in control of your business once a formal agreement has been made with unsecured creditors, to repay over a longer period of time. Interest and charges on the debt cease, allowing you to trade your way out of difficulty as long as you have a viable business.
A CVL can protect you from allegations of wrongful trading if there is no hope of recovery, as it places your creditors’ interests first.
If you are an engineering consultant facing high levels of debt, Real Business Rescue can provide the expert advice you need to deal with the situation. We are a major part of Begbies Traynor Group, the leading UK professional services company. With 72 offices across the country, we will arrange a free same-day meeting in complete confidence to discuss your position and establish the best options
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