What does the MHA Henderson Loggie Business Recovery & Insolvency team do?
We live and breathe recovery and insolvency, but most people don’t come across financial distress often and therefore aren’t aware of what we do. This article outlines where we can provide support.
Practical Straightforward Advice
The key part of our business is providing practical straightforward advice for those facing financial difficulties by working through a range of options to identify the pros and cons of each option and the likely outcomes. We act for corporates, partnerships, sole traders, individuals and charities.
We then assist in the implementation of a solution, which may be a formal insolvency appointment. We have a licensed insolvency practitioner who can act for companies in Administrations, Company Voluntary Arrangements and Liquidations. With regards to personal insolvency it could be bankruptcy (also known as sequestration in Scotland) or a Trust Deed – which is a voluntary arrangement with creditors.
How do we support businesses
Outside of formal insolvency appointments we can act for a company providing support to the directors or sole trader to negotiate with creditors, manage cash flow, refinance and obtain funding.
We also support creditors who are owed money, for example, in debt recovery actions which may be followed by a formal insolvency appointment.
We provide advice to directors regarding their responsibilities when things get tough. If the directors continue to trade when there is no reasonable prospect of avoiding an insolvent liquidation they risk being liable for wrongful trading. As soon as the directors become aware that the company may enter insolvency, they should seek professional advice.
We support other professionals. They may be an expert in their own field, but no matter what sector or service their clients operate in, financial distress can impact them at any time. We provide specialist insolvency advice to help them support their clients.
How do we advise businesses
We advise shareholders, in conjunction with our tax colleagues, in how to maximise tax efficient capital distributions and implementing members voluntary liquidations “MVLs”. MVLs need to be carried out by a licensed insolvency practitioner. In a MVL we work to ensure distributions to the shareholders in a quick and efficient manner.
Unlike other service lines in the firm like accounts or tax, we don’t have “clients” as would be typically recognised. We tend to have work providers that will introduce us via their role as trusted adviser to an individual or a client. We act on behalf of “interested parties”, such as creditors, bankers etc. We also get direct queries from people who have found us via their own research.
We are situational experts. Any individual / business / entity that finds themselves in a financial distress situation would benefit from a conversation with us. We will always meet free of charge and provide an analysis of the options without any fees being charged.
Luckily, most people don’t experience insolvency, but we can provide support when they do.
Get in touch
Contact a member of our Business Recovery and Insolvency Department on 01382 200055 or firstname.lastname@example.org