Otherwise known as informal arrangements, a creditor negotiation is an arrangement with the company’s secured and/or non secured creditors.

If a company is having difficulty meeting its financial obligations then liquidation of that company might be necessary. Liquidation is the process of appointing a registered liquidator to wind up a companies financial affairs, dismantle the company and ensure the fair distribution of the companies assets to its creditors.

There are a number of different types of liquidations, these include:

A company receiver is usually appointed by a secured lender who holds a charge or mortgage over the company. In some circumstances the court can also appoint a receiver to the company.

The company receiver is responsible for ensuring the repayment of that charge or security. This is usually done by taking control of the company’s assets. Therefore the main aim of the company receiver is to act in the best interest of the secured lender who appointed them.

Deed of Company Arrangements

A Deed of Company Arrangement is an option available to a company in Voluntary Administration.

There are many reasons a company may need funds, whether they be to refinance existing debt or to even grow the company.

There are two main types of funding for companies, these include:

• Debtor funding.
• Capital raising (issue of securities).
• Hybrids.

Debtor funding is simply through a loan or a promissory note etc. and usually involves regular repayments and an interest rate.

If a company is experiencing cash flow problems, can’t meet its debts or pay its bills as and when they fall due then a Voluntary Administration might be the answer.
 
A Voluntary Administration is the process of appointing a voluntary administrator to a business in an attempt to restructure the financial affairs of that business.
 
The administrator works closely with the directors to explore the company’s options, these options include:

If your company is experiencing problems with tax there may be options available for you.