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Insolvency

Insolvency and Restructuring Specialists

WSM Marks Bloom and MBI Coakley specialise in offering solvent and insolvent liquidations and restructuring services to companies and individuals.

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Committed to saving businesses

We are committed in particular to saving businesses by negotiation with creditors, using the firm’s enormous wealth of experience in the small business sector. Frequently, this is by means of a voluntary arrangement to enable a business to continue without the burden of its past debt.

The chances of a rescue succeeding are always enhanced when financial difficulties are recognised at an early stage, meaning the quicker you act, the more chance you have of saving your business or personal affairs.

In addition to a presence in the WSM offices in Wimbledon, we have our main base in Kingston and an office in Guildford. Please contact us using the details below.

Kingston Based Office

Unit 2, Spinnaker Court, 1C Becketts Place, Hampton Wick, Kingston upon Thames, KT1 4EQ

Telephone: 020 8939 8240, Fax: 020 8549 6218

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Guildford Based Office

2nd Floor, Shaw House, 3 Tunsgate, Guildford GU1 3QT

Telephone: 01483 405 160

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020 8939 8240

email: insolvency@wsm.co.uk

Our Services

Administration

Administration is used to either to:

  • Rescue the company as a going concern or,
  • Sell the business and assets to produce a better result to creditors than in liquidation.

Administration can also be used, where neither of the above two objectives is achievable, as a mechanism to realise assets in order to distribute the proceeds to secured or preferential creditors.

The licensed insolvency practitioners at WSM Marks Bloom are able to act as your Administrator. A company can be placed into administration either by:

  • An order of the court, on application by the company, its directors or one of more creditors,
  • Direct appointment by the company, its directors or a floating charge holder.

An Administrator takes control of the company and has powers to carry on the company’s business and realise its assets. The administration provides court protection, thereby preventing creditors from recovering assets or taking actions against the company.

The Administrator formulates proposals for approval by the creditors, setting out how it is intended to achieve the purpose of administration. A majority of creditors who vote, by value, is required to approve the proposals.

If you have a question on any of the above, please contact Adam Nakar.

Company Voluntary Arrangement

A company voluntary arrangement (CVA) enables the directors of a company to put forward a proposal to creditors, being an agreement in satisfaction of its debts.

The CVA proposal may involve delayed and/or reduced payments of debt, capital restructuring or an orderly disposal of assets. A meeting of creditors is convened for the company’s creditors to consider the CVA proposal. A CVA requires the approval of at least 75% by value of the creditors that vote. Once approved, it is legally binding on the company and all its creditors, whether or not they voted in favour of it.

A licensed insolvency practitioner acts first as Advisor, making sure a CVA is right for the company; secondly as Nominee to assist the directors to draft the CVA proposal, then as Supervisor once the CVA is approved.

Following approval the Supervisor administers the realisations, agrees creditors’ claims and makes distributions accordingly.

Similar to companies, partnerships can put forward a proposal to creditors to approve a partnership voluntary arrangement (PVA).

Administrative Receivership

The final procedure available to rescue an insolvent company is administrative receivership. Only a floating charge holder having the benefit of a charge created on or before 15 September 2003 can appoint an administrative receiver, when a company is in default or in breach of the terms of its borrowing.

The licensed insolvency practitioners at WSM Marks Bloom are able to act as your Administrative Receiver, similar to the role of Administrator, and are able to continue to operate the business whilst trying to sell it as a going concern. The assets realised are distributed to the floating charge holder.

If there are funds remaining once the receiver has finished the work, these will be passed to a separately appointed liquidator to distribute to the general body of creditors.

If you have any questions on any of the above, please contact Doug Pinteau.

Compulsory Liquidation

Often the last resort for creditors; a compulsory liquidation is ordered by the court, on the petition of a creditor, the company or a shareholder. If they are owed more than £750 they can issue a statutory demand first, requiring payment within 21 days. If the company fails to pay within this time period, insolvency can be established. The court needs to be satisfied the debt is owed and the company insolvent.

Following the making of a winding-up order, the Official Receiver becomes the Liquidator. If the assets are likely to cover the administrative costs of the liquidation, the Official Receiver may convene a meeting of creditors to appoint a licensed insolvency practitioner to act as Liquidator. If not, the Official Receiver may remain in office or can apply to the Secretary of State to appoint a licensed insolvency practitioner instead.

It is important to note that the Official Receiver retains responsibility for investigating the conduct of directors and company officers, even in the circumstances when the liquidation is passed to a licensed insolvency practitioner.

The Liquidator will continue to have the duties of realising the assets of the company for the benefit of creditors and, if possible, agreeing creditors’ claims in order to make a distribution.

Creditors’ Voluntary Liquidation

A creditors’ voluntary liquidation is used when the company cannot be saved. Meetings of shareholders and creditors are convened, to wind up the company and appoint a licensed insolvency practitioner to act as Liquidator.

It is in the best interests of the directors to take action at an early stage, in order to minimise the risk of wrongful trading.

As the Liquidator, we have several duties, the main being:

  • to realise the assets of the company, for the benefit of creditors,
  • investigate the company’s affairs and, if possible,
  • agree creditors’ claims and distribute funds.

Members’ Voluntary Liquidation

A members’ voluntary liquidation is a procedure used when a company has fulfilled its purpose and is to be closed down in a tax efficient manner.

The directors must swear a Declaration of Solvency embodying a statement of the estimated assets and liabilities of the company; the liabilities are to be paid within 12 months.

The shareholders of the company pass a resolution to wind up the company and appoint a licensed insolvency practitioner as Liquidator.

The Liquidator’s duties include:

  • realising the assets
  • agreeing and paying creditors’ claims
  • making distributions to the shareholders

The shareholders’ distributions are treated as capital rather than income; accordingly they are subject to capital gains tax rather than income tax. In many cases the criteria for entrepreneurs’ relief are met, potentially resulting in a substantial tax saving.

Individual Voluntary Arrangement

An individual voluntary arrangement (IVA) enables an individual to put forward a proposal to creditors, being an agreement in satisfaction of their debts. The IVA proposal may involve delayed and/or reduced payments of debt, a lump sum settlement or an orderly disposal of assets.

A meeting of creditors is convened for the individual’s creditors to consider the IVA proposal. An IVA requires the approval of at least 75% by value of the creditors that vote. Once approved, it is legally binding on the individual and all creditors, whether or not they voted in favour of it.

An IVA avoids bankruptcy, potentially allowing individuals to maintain control of their assets and providing a better return to creditors.

We are able to act first as Advisor, making sure an IVA is right for the individual; secondly as Nominee to assist the individual to draft the IVA proposal, then as Supervisor once the IVA is approved.

Following approval the Supervisor administers the realisations, agrees creditors’ claims and makes distributions accordingly.

Bankruptcy

Bankruptcy proceedings commence with the making of a bankruptcy order by the court. An application can be made by:

  • A creditor, owed more than £5,000,
  • By the debtor him/herself or,
  • By a Supervisor of a failed individual voluntary arrangement.

Following the making of a bankruptcy order, the Official Receiver is appointed Trustee in Bankruptcy. If the assets are likely to cover the administrative costs of the bankruptcy, the Official Receiver may convene a meeting of creditors to appoint a licensed insolvency practitioner to act as Trustee in Bankruptcy.

On bankruptcy, control of the individual’s estate (assets), with some exceptions, passes to the trustee, who has a duty to realise the assets for the benefit of creditors.

Should the bankrupt have surplus income during the three years following the order, then an element of this is likely to be paid into the bankruptcy estate by way of an Income Payments Agreement (IPA) or Income Payments Order (IPO).

There are special rules in respect of the bankrupt’s interest in the residential home; should the value of this be greater than £1,000, the trustee has three years from the date of the bankruptcy order to realise this, failing which it reverts back to the bankrupt.

A bankrupt will be subject to certain restrictions until discharge, this normally being granted a year after the making of the order, unless the bankrupt fails to co-operate, at which point the discharge can be suspended.

Advice for Creditors

WSM Marks Bloom are able to advise companies and individuals as creditors, in assisting to maximise recovery prospects and also mitigate risk of bad debt, be it through a review of credit terms or retention of title clauses.

We are also on hand if a creditor receives notice of a meeting concerning a formal insolvency procedure. We can undertake a review and, if warranted, represent them at such meetings.

If you have any questions on any of the above, please contact Adam Nakar.

Our Insolvency Team

Have A Question? Contact One Of Our Experts:

Douglas Pinteau

Douglas Pinteau

Insolvency Partner

Adam Nakar

Adam Nakar

Insolvency Partner

Andy Whelan

Andy Whelan

Insolvency Partner

Andrew Segal

Andrew Segal

Licensed Insolvency Practitioner

Dermot Coakley

Dermot Coakley

Licensed Insolvency Practitioner

Creditors’ Guides
Other Resources

Creditors’ Guides to Fees

Effective from 1 April 2021

Previous Versions

England and Wales  – effective until 31 March 2021

England and Wales – effective until 5 April 2017

England and Wales – effective until 30 September 2015

England and Wales – effective until 31 October 2011

England and Wales – effective until 5 April 2010

Other Documents

If you have any questions on any of the above, please contact Doug Pinteau.

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