McAlister & Co are a leading insolvency practitioner offering a variety of insolvency and turnaround solutions for both business and individuals.
Navigating financial uncertainty can be one of the most challenging experiences for any business owner. At McAlister & Co, we offer a comprehensive range of business rescue and insolvency solutions to guide you through these turbulent times and take the stress and pain out of corporate recovery and personal insolvency.
With over 20 years of experience, McAlister & Co have helped countless businesses regain control of their finances and plan for a better future. We are a family-run licensed insolvency practitioner that provides friendly support and advice for directors, sole traders, partnerships, and individuals.
Whether you’re looking to turn things around and rescue your company or want to close down in an orderly manner, our team of experienced insolvency practitioners provides the support, expertise, and solutions you need.
We understand that insolvency can be a worrying an incredibly stressful time, which is why our friendly, approachable team are on hand to provide clear, sensible and well thought out advice every step of the way. Here’s everything you need to know about the services we offer and how we can support you.
Tailored Insolvency Solutions for Your Needs
When it comes to business insolvency, we know that every situation is different – and that is why we offer a range of insolvency and business rescue solutions that are tailored to your own individual needs. There are a number of ways to help you achieve the outcome you desire, and our expert team will work hard to deliver a bespoke service.
Understanding your options during financial difficulty is crucial, which is why, as a specialist insolvency practitioner, McAlister & Co offers a full range of solutions to suit different situations. Whether you want to rescue your business or close it in compliance with legal requirements, our services are tailored to meet your needs.
From business rescue and recovery solutions to liquidation and restart options, as well as negotiating with creditors, dealing with HMRC, and advice on how to protect your assets, our dedicated team are on hand to help and advise.
If you want to carry on trading, restart your company, or even dissolve your business, you can count on us to provide confidential and easy to follow advice. Alternatively, should you decide to wipe the slate clean and start afresh, we can also help you to start a new business without the burden of previous debt.
As a leading licensed insolvency practitioner, we also offer personal insolvency advice and help hundreds of people across the UK every year. Whether you need to reduce or wipe off your debt or simply want some temporary breathing space so you can decide on your next move, our dedicated team are on your side.
Our expert insolvency and recovery services include:
- Business rescue and recovery options
- Liquidation and restart options
- Solutions for directors, sole traders, partnerships and individuals
- Access to a team of licensed insolvency practitioners
- Free, confidential consultations
- Clear, jargon-free advice about the options available
Company Rescue Solutions
When your business faces financial strain, there are often ways to turn things around. Our company rescue services aim to stabilise operations, restore confidence, and create a sustainable path forward.
Company Voluntary Arrangement (CVA)
A company voluntary arrangement enables you to repay debts over a structured period, ensuring your business can continue operating while restructuring its finances. A CVA is a legally binding agreement between a company and its creditors to repay debts over a set period. It’s designed for businesses that are fundamentally viable but require breathing room to restructure.
Advantages of a CVA:
- Your company can continue trading while resolving debt issues.
- Creditor legal action is paused, providing a more stable environment.
- CVAs often offer creditors a better return than other insolvency options.
- Stops creditor actions, including court proceedings.
- Reduces pressure by consolidating debts into affordable payments.
- Preserves customer relationships by maintaining business continuity.
How It Works:
- Our insolvency practitioners draft a detailed repayment proposal.
- The proposal is voted on by creditors, with at least 75% approval required for implementation.
- Once agreed, the CVA protects your business and allows you to focus on recovery.
CVAs are particularly effective for businesses experiencing short-term financial setbacks but with solid future prospects.
Company Administration
Administration offers a lifeline for businesses facing immediate financial distress by freezing creditor actions and developing a recovery plan. Administration provides immediate protection for your company while a recovery or restructuring plan is developed. It halts creditor actions, giving you the space to assess options and stabilise finances.
Advantages of Company Administration:
- Time to explore rescue or sale options without creditor interference.
- Expert-led restructuring to address inefficiencies or liabilities.
- Options for transitioning to liquidation if recovery isn’t feasible.
What Happens During Administration?
- An administrator is appointed to manage the company and its assets.
- Creditor demands and legal proceedings are paused.
- The administrator’s priority is to rescue the business or maximise returns for creditors.
Administration is an excellent option when your business needs time and expert support to overcome financial difficulties.
Pre-Pack Administration
This process involves arranging the sale of your business before administration to a new entity, often preserving operations and jobs. A pre-pack administration allows for the quick sale of a business’s assets, often to existing directors or a new entity. This option preserves value while addressing unsustainable debts.
Advantages of Pre-Pack Administration:
- Protects jobs by transferring employees to the new entity.
- Maintains business operations without disruption.
- Ensures creditors receive the best possible outcome.
How It Works:
- Suitable for businesses with operational viability but overwhelming debts.
- Ensures a clean slate for the new entity while maximising creditor returns.
This solution is ideal for businesses with operation viability but significant financial challenges.
Company Closure Services
When rescuing your business is no longer feasible, closing it in an organised and compliant manner is essential. McAlister & Co offers professional company closure services to protect your interests.
Creditors’ Voluntary Liquidation (CVL)
A creditors’ voluntary liquidation allows directors to wind up an insolvent business ethically and transparently. A CVL is a formal process that allows directors to close an insolvent company while addressing creditor claims in an orderly way.
How It Works:
- Directors voluntarily initiate the process.
- Creditors approve the liquidation at a meeting.
- A licensed insolvency practitioner is appointed to sell assets and distribute funds.
- Resolution by shareholders to proceed with liquidation.
- Appointment of a liquidator to handle asset sales and creditor distributions.
- Compliance with legal and regulatory requirements, ensuring directors are shielded from liability unless misconduct is proven.
Advantages of a Creditors’ Voluntary Liquidation:
- Protects directors from accusations of wrongful trading.
- Provides closure and allows you to move forward with peace of mind.
- Ensures creditors are treated fairly.
A CVL is the most appropriate option for insolvent businesses with no realistic prospect of recovery.
Your Role as a Director in Insolvency
As a director, your responsibilities change when your company becomes insolvent. Legally, your duty shifts from prioritising shareholders to acting in the best interest of creditors.
Immediate Actions:
- Cease trading if insolvency is clear to avoid wrongful trading accusations.
- Maintain detailed and accurate financial records.
- Cooperate fully with appointed insolvency practitioners.
Responsibilities During Insolvency:
- Attend creditor meetings and provide all necessary documentation.
- Support the liquidator or administrator’s investigations.
- Act in good faith to minimise losses for creditors.
Failure to fulfil these obligations can lead to personal liability, fines, or director disqualification.
Why Choose McAlister & Co as Your Insolvency Practitioner?
Whatever your financial situation, the sooner you seek advice, the more options you will have available. We understand that times like this can be confusing and stressful, and that insolvency can be a lonely place, but with McAlister & Co, it doesn’t need to be that way.
When you work with us, you gain a partner who understands the nuances of insolvency and is dedicated to achieving the best outcome for you. Deciding to seek insolvency advice is never easy. However, at McAlister & Co, we strive to make the process as straightforward and stress-free as possible. Here’s why businesses trust us:
- Experience You Can Count On: Over 20 years in the industry, handling cases of all sizes and complexities.
- Tailored Solutions: Every business is unique, and so are our approaches. We craft solutions that align with your specific needs.
- Empathetic Support: Financial challenges can be overwhelming, but you’re not alone. We’re here to provide compassionate, judgement-free advice.
- Transparent Pricing: We’re upfront about our fees, so there are no hidden surprises along the way.
When you choose McAlister & Co, you gain a partner dedicated to achieving the best possible outcome for your business.
Understanding Insolvency: Common Issues and Warning Signs
It’s crucial to understand the factors that can lead to insolvency and recognise the warning signs early. Even the most resilient businesses can encounter financial difficulties due to external and internal challenges, and understanding these factors can help you act early.
- Poor Cash Flow Management: Inadequate cash flow is a primary cause of insolvency. Even profitable businesses can face insolvency if they lack sufficient liquid assets to meet immediate obligations.
- Late Payments from Customers: Delayed payments disrupt financial stability, particularly for businesses reliant on predictable cash cycles.
- Excessive Borrowing: Accumulating unsustainable levels of debt to fund growth or cover losses can lead to unmanageable repayment obligations.
- Economic Downturns: Recessions or industry-specific declines can reduce demand for products or services, leading to financial strain.
- Over-expansion: Expanding too quickly without proper financial planning can overextend resources and create operational inefficiencies.
- Poor Financial Records: Inaccurate or incomplete financial data can lead to uninformed decisions and missed opportunities to address problems early.
- Supply Chain Disruptions: Delays or increases in supply costs can affect profitability and cash flow.
- Legal or Regulatory Challenges: Fines, compliance failures, or unexpected legal liabilities can destabilise a business.
- Ineffective Leadership: Poor strategic decisions, lack of foresight, or insufficient planning by management often contribute to financial instability.
Signs Your Business May Be Insolvent
Recognising insolvency warning signs early is crucial for taking corrective action. Here are 10 common indicators that your business might be in trouble:
- Struggling to Pay Bills: Constantly deferring payments or prioritising creditors indicates financial strain.
- Mounting Debt: Increasing reliance on loans or credit cards to stay operational is a red flag.
- Unable to Meet Tax Obligations: Falling behind on VAT, PAYE, or other taxes can lead to severe penalties.
- Staff Payment Delays: If you can’t pay wages on time, it’s a clear sign of cash flow issues.
- Increased Creditor Pressure: Persistent calls or legal action from creditors is a significant warning.
- Exceeding Overdraft Limits: Regularly maxing out your overdraft suggests an inability to manage working capital.
- Declining Profit Margins: Reduced profitability due to higher costs or lower revenues could indicate deeper problems.
- Supply Chain Issues: Difficulty paying suppliers often results in delays or shortages, further exacerbating financial problems.
- Director Loans or Personal Funding: Relying on personal funds to cover business expenses shows a lack of sustainability.
- Auditor Concerns: Comments about your company’s ability to continue as a going concern should not be ignored.
Frequently Asked Questions
What are insolvency solutions?
Insolvency solutions refer to professional advice and formal procedures to help businesses and individuals manage financial distress, including company rescue, restructuring, or closure.
When should I seek advice from an insolvency practitioner?
If you’re struggling to pay debts, facing legal action from creditors, or worried about cash flow, it’s time to seek professional advice from a licensed insolvency practitioner. Acting early increases your options.
Can I still trade during a CVA?
Yes, a CVA allows you to continue trading while restructuring your debts, giving your business the chance to recover and thrive.
What happens to directors in a CVL?
Directors are required to cooperate with the liquidator and provide accurate company records. Once the process is complete, they’re generally free from liabilities unless misconduct is proven.
What’s the difference between administration and liquidation?
Administration aims to rescue a company or maximise returns for creditors, while liquidation involves closing the business and selling its assets to repay debts.
Is pre-pack administration ethical?
Yes, when carried out correctly, pre-pack administration follows strict guidelines to ensure creditors are treated fairly while preserving the business’s value.
How much do your services cost?
Costs vary depending on the procedure and complexity of the case. McAlister & Co provides clear and transparent pricing at the outset.
Can I recover my business from administration?
Yes, businesses in administration can recover if viable solutions like CVAs or pre-pack sales are implemented effectively.
What happens to employees during liquidation?
In a CVL, employees are made redundant, but they may be eligible for redundancy payments through the government’s Redundancy Payments Service.
Is insolvency the same as bankruptcy?
Insolvency refers to a company’s inability to meet financial obligations, whereas bankruptcy is a specific legal process applicable to individuals.
How long does a CVA last?
CVAs typically last five years, though terms can vary depending on the agreement with creditors.
Can directors be held personally liable for debts?
Yes, directors may be held personally liable if found guilty of wrongful trading or fraudulent activity.
Do I need to inform suppliers if my company enters administration?
Yes, transparency with suppliers is essential to maintain trust and facilitate business continuity where possible.
Tailored Solutions from an Expert Insolvency Practitioner
If your business is facing financial uncertainty, McAlister & Co’s tailored insolvency solutions offer the guidance and support you need. Contact us today for a free, confidential consultation and take the first step toward resolving your financial challenges.
Get in touch today to book your free, confidential consultation and discover how our team of insolvency practitioners can support you.
