Updated: 19th November 2020
Aberdeen Office 01224 418 700 - Office Details: Aberdeen Insolvency Practitioners
Dundee Office 01382 684 997 - Office Details: Dundee Insolvency Practitioners
Edinburgh Office 0131 203 3416 - Office Details: Edinburgh Insolvency Practitioners
Glasgow Office 0141 278 6165 - Office Details: Glasgow Insolvency Practitioners
Inverness Office 01463 642 854 - Office Details: Inverness Insolvency Practitioners
At the moment, our team are extremely busy advising hundreds of people every week affected by the Oil & Gas downturn. The falling price of oil has directly and indirectly impacted businesses and individuals across Aberdeenshire but it's important to recognise that help is available. We're currently advising:
• Oil & Gas contractors, executives and employees
• Company directors and sole traders
• Owners of hotels, restaurants and pubs
• Commercial and residential landlords
• Other Aberdeen-based business owners
Please do not hesitate in contacting me for personal advice regarding financial troubles as a result of the Oil & Gas crisis.
The term ‘corporate insolvency’ can seem quite formal, dry and corporate itself; but put in layman’s terms, corporate insolvency is largely about companies in financial distress where the business is unable to pay its debts as and when they fall due for payment, or where the value of the company’s liabilities is greater than the value of its assets. For personal insolvency information free debt advice for scottish residents we have our own www.scotlanddebt.co.uk website which covers all the main solutions on offer to people with personal debt including: scottish trust deeds, debt arrangement schemes and sequestration.
If your business is in this situation at present, the company would be deemed insolvent. If this is the case, it’s crucial to recognise you’re not alone. A fine line exists between what is considered ‘trading insolvent’ and ‘wrongful trading’; the key difference is whether you are able to still pay your bills and debts on time. If you are unable to do this, your continuation of trade would fall into the ‘wrongful’ category.
There are a number of reasons why a company or limited liability partnership might suddenly find itself in trouble, such as the sudden, unexpected loss of a key client or contract. You might also be the victim of market fluctuations or simply pure bad luck which has left the firm hanging in the balance. The sooner you acknowledge that trouble is brewing, the greater number of options will be available to you as time is often of the essence.
There are a number of possible insolvency solutions and, contrary to popular belief, insolvency doesn’t necessarily mean doom and gloom. It can be a great opportunity to analyse your business structure; see what isn’t working well and look for ways to adopt change for the long-term.
Key insolvency solutions at Real Business Rescue include:
Administration and pre-pack administration are terms you may have heard or already be familiar with, particularly in light of some recent high-profile administrations on the UK high street. This solution would be chosen to help an insolvent company continue trading as a going concern and to ultimately provide a better return for creditors than if the company was liquidated.
For more information, read our dedicated Scottish administrations page.
A receiver (a licensed insolvency practitioner) may be appointed to recover money owed by a company to one of its creditors if the company has breached the terms of borrowing with a charge. The receiver will be empowered to handle the sale of charged assets to help repay the debt, and will take effective charge of the management of the company’s affairs.
For more information, read our dedicated Scottish receiverships page.
There are different types of liquidations which are all ‘end-game’ procedures for struggling companies. The most common is a Creditors Voluntary Liquidation (CVL) where a company concedes that the business is no longer viable due to escalating debts and no means of paying those debts. The role of a licensed insolvency practitioner – like with the administration – would be to realise assets from the company, such as through the sale of equipment, stock, property etc, to help pay creditors.
For more information on different types of liquidation, read our dedicated Scottish liquidations page.