BUSINESS RESCUE & INSOLVENCY SOLUTIONS TO SAVE YOUR BUSINESS

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When a company is facing financial distress, there are several business rescue and insolvency solutions available. The most suitable option will depend on your company’s unique circumstances, your long-term objectives, and the level of creditor pressure you are experiencing.

Pre-Pack Administration, Liquidation, and a Company Voluntary Arrangement (CVA) are all formal company insolvency procedures. These processes are legally recognised and involve the appointment of licensed insolvency practitioners. By contrast, a Company Debt Management Plan is an informal arrangement and is not registered at Companies House.

In both Liquidation and Pre-Pack Administration, the existing limited company will cease trading. However, the business—its assets, goodwill, and operations—can be transferred to a new, debt-free phoenix company, allowing the business to continue without interruption.
This approach is legal and compliant, provided specific criteria are met, and is supported by the Enterprise Act 2002 and UK insolvency legislation, which promote business rescue and the survival of viable companies.

With a CVA or a Company Debt Management Plan, the original limited company remains active and continues to trade while its debts are restructured and repaid over time.
A CVA is a formal process registered at Companies House and offers the additional advantage of a moratorium, which prevents creditors from taking enforcement action while the arrangement is in place.

For many businesses, a Pre-Pack Administration or Liquidation provides the most effective route forward, allowing the core business to continue through a phoenix company while all historical debts are written off. However, if the existing company must remain in place for legal, regulatory, or contractual reasons, a CVA or Debt Management Plan may be the more appropriate solution.

Every business rescue or insolvency solution has its own advantages and potential drawbacks. That’s why we work closely with you to fully understand your company’s financial position, identify any areas of concern, and recommend the most suitable solution based on your objectives and the outcome you want to achieve.

For many companies struggling with significant historical debt, Liquidation or Pre-Pack Administration are often the most effective—and frequently the most cost-efficient—options. Both procedures enable all company debts to be completely written off, while still allowing the underlying business to continue trading through a new, debt-free phoenix company. This approach provides a clean financial reset and allows the business to move forward without the burden of past liabilities, making it a highly practical and attractive business rescue strategy for directors seeking long-term stability.