Updated: 16th October 2020
The private transport sector faces unprecedented challenges as Covid-19 continues to disrupt business and create severe financial problems. If you run a coach company or operate a private transport firm and are facing insolvency, it’s imperative that you seek professional advice from a licensed insolvency practitioner (IP) straight away.
There may be options open to you that you haven’t considered, which could stave off business closure until the situation improves. Real Business Rescue are insolvency experts and will provide trustworthy unbiased guidance on the best way to proceed.
Cancellation of coach tours and day trips has created huge uncertainty for operators in the private transport sector. With such tight restrictions on the mixing of households and group numbers, and unpredictability over when tougher Covid measures will be introduced, operators are facing an immense challenge.
So is there a future for coach companies and private transport operators? It’s hoped that a vaccine will release us from the economic and health catastrophe we’re currently experiencing, so how can you help your business to survive until then?
It’s essential to seek advice from licensed insolvency practitioners if your coach company or private transport firm has entered insolvency, or you believe it is about to become insolvent.
You’ll be able to access reliable guidance on how to proceed, and find out about any potential options for rescuing your company. So what might be available to you under these challenging trading circumstances?
As a transport company you may own valuable hard assets that could be sold to generate funds, and help keep the company afloat. Some forms of asset based lending allow you to continue to use the asset(s) in question under a sale and leaseback arrangement.
If your business enters company administration, an eight-week moratorium period commences that allows you time to consider your options without continued creditor pressure. All existing or planned creditor action ceases for this time whilst a plan is made for the company’s future.
Company administration can lead to a number of outcomes but if no possible rescue measures are likely to succeed, a Creditors’ Voluntary Liquidation (CVL) enables you to comply with insolvency laws by placing creditor interests first.
Creditors’ Voluntary Liquidation (CVL)
Creditors’ Voluntary Liquidation is a formal process that protects yourself and other directors from wrongful trading. The business closes down, but it’s possible that you might be able to claim director redundancy if you’ve worked for the company as an employee.
If your coach company or private transport firm is struggling due to coronavirus, Real Business Rescue can provide the reliable advice you need. We offer free same-day consultations to help you quickly find a way forward, and operate a network of offices around the UK.
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