Businesses We’ve Helped

When some of the restrictions were initially eased, the business was able to recommence trading but was operating on a significantly reduced capacity. A reduction in turnover resulted in delayed payments towards the business’s operating costs. With charges and penalties being applied to an overdrawn overdraft facility, the Company’s debt rose to an unmanageable level.

Realising that the business had gone beyond the point of recovery, she made the decision to appoint one of Libra’s licensed insolvency practitioners as Liquidator. This has prevented debt from continuing to accumulate, and thus preserving the director’s reputation and conduct.

The director has since been able to set up a new Company and renegotiate favourable terms on the lease of the B&B under the new entity. The old Company is now dissolved, and the new Company has begun to thrive now that the easing of the majority of restrictions have been lifted.

Within weeks of the business being placed into liquidation, we were able to distribute 80% of the capital (cash) in the business to the director, followed by a further 20% at a later date.

By placing the company into MVL, the director, as sole shareholder, was able to utilise Entrepreneurs Relief and the capital distribution was taxed at the significantly reduced rate of 10%.

Having reviewed the Company’s financials, we assisted the directors in opening discussions with HMRC, but due to the late stage of our involvement, HMRC were unwilling to accept any of the proposals being put forward. However, the directors took the decision to place the company into administration which allowed the existing profitable contracts to be saved and for trading to continue for a short period to conclude these projects and generate a pool of cash for creditors.

The assets of the business, including the order book, were ultimately purchased by a new company setup by the director, saving the jobs of all 15 staff. The new company continues to trade successfully, having budgeted, and set its pricing strategy appropriately.

We were appointed in the bankruptcy of a partnership and successfully traded the business while a buyer was found.

This course of action relieved the stress on the partners of the business and within 3 months we were able to find a buyer for the business, which ultimately meant there were no residual claims that fell personally onto the partners.

The sum owed was substantial, which eventually led to HMRC commencing proceedings to raise a winding up petition against the company.

Libra undertook a financial review of the Company and it was noted that it held no tangible assets, so it was agreed that the company would enter liquidation. With the assistance of Libra, the director was able to set up a new Company, negotiate a new lease with the landlord and agree more favourable trade creditor terms. The new company now trades profitably and cash flow is no longer an issue.