Protecting Your Business

25th Mar 2020

It has been accepted that the COVID-19 pandemic will have a serious adverse effect on all economies in the world, with many businesses unable to continue to meet their obligations and will be forced to close or even liquidate. It has been suggested However, that normal economic conditions will return in 6 to 12 months’ time.

Commercial and Business Law

Now is the time to protect the core assets and competencies of your businesses and make arrangements with employees, suppliers, landlords and other creditors to give the business breathing space while the virus passes. The Government is of course helping businesses but it will take time for cash and confidence to return. It may be appropriate to seek a Creditors Voluntary Arrangement, which is a mechanism that allows companies who face financial distress to make a deal with their creditors so as to delay payments, pay reduced payments or prioritise critical creditors over others so the business can survive

Other options include undertaking a pre-packaged administration where the assets are sold to a connected party or unconnected third party.

We can also assist to negotiate time to pay arrangements with the HMRC and undertake informal work out agreements with you clients creditors. We are very experienced at these issues especially dealing with a vast range of HMRC cases and issues, opposing petitions and seeking validation orders. The Government has indicated HRMC will be lenient on tax liabilities and this crisis maybe an opportune time to deal with them.

Please email if we can assist you in these difficult times.