Corporate Restructurings

Not all businesses are as high profile as Northern Rock or Bradford & Bingley but many are going through similar periods of financial difficulties at present. Many need more cash like some of the banks that have been in the press during May 2008.

Peter Carey a partner in Sedgwick Phelan says:

"Act early and do not panic, is our principal advice to local businesses in difficulties in the present economic climate. If you may need more funds, think about that early before creditors are calling. Look at cash flow on a regular basis. The Companies Act 2006 sets out the duties directors owe to a company and if you operate through a limited company you need to ensure you comply with your legal obligations. It is an offence to trade whilst insolvent. It is important to take advice from solicitors or accountants before that point is reached so that sensible decisions can be made about the business.

It may be possible to sell off the shares in the company or its assets or sell a partnership or business operated as a sole trader which is preferable to going into liquidation as a company (or bankruptcy for a company). It is better to take charge, appoint your own liquidator or effect voluntary arrangements with creditors where possible. We can steer you through the process and also advise on any sale or refinancing of your business."

Call Peter Carey on 0161 653 5299
peter.carey@sedgwick-phelan.co.uk

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