Looking for a Company Receiver?
Welcome to Dissolve, experts in Company Receivership
My bank is making threatening noises what should I do?
If your business is in trouble and the relationship with the bank is breaking down, we suggest that you look carefully at the guides in this site. Work out the viability of the business, can you trim costs? Work out the problems, set out the position and have a meeting of directors.
Decide if the business can continue but needs to be restructured, or if it is just not viable then consider Voluntary Administration or Liquidation.
Receivership should not be confused with Administration. A receiver is appointed by a floating charge holder – this is typically a bank. What does this mean?
- The company requires finance for its activities and borrows from a bank (or other secured lender).
- In consideration for providing the loan the bank requires security. Normally the company will sign a debenture with a fixed and floating charge. This allows the bank security over the assets of the company.
- If the terms of the agreement are breached or the company does not conform to the bank's wishes the charge holder can:
a) Appoint investigating accountants to ascertain how secure or not the bank's debt is and what is the best route forward (not always receivership).
b) Demand formal repayment of the loans without notice.
c) Appoint a receiver to administer and receive the company's assets. -
The receiver has a duty to collect the bank's debts only, he/she is not generally concerned with the other unsecured creditors or shareholders' exposure.
If that sounds like your situation please call us now on 02 9290 2220 for confidential free advice on Company Receivership. If not, try the following other options for companies in distress:
Voluntary Administration
Voluntary Administration places an insolvent company in the hands of an independent person who can assess all the options available to generate the best return for creditors and shareholders. In some cases, the owner may be able to retain control or a part share in the business. In other cases the business can be sold as a going concern and employees may be able to retain their jobs.
For more information on Voluntary Administration, please see our sister site Restructuring Works, which provides advice to directors of companies in financial distress.
Voluntary Liquidation
A Voluntary Liquidation is a liquidation that is supported by the company's directors, as apposed to a liquidation mandated by the Court.
The Law allows two approaches to a liquidation depending on whether your company is solvent or insolvent (Try our test if you are unsure)::
Insolvent Companies require a Creditors Voluntary Liquidation. Sometimes a company is just not viable and must be liquidated. At Dissolve we can place a company into liquidation in a matter of hours and then complete the liquidation quickly, efficiently and at a very low fee.
Solvent Companies require a Members Voluntary Liquidation. Simplifying your corporate structure by disposing of redundant companies can eliminate annual return fees, reduce your cost of compliance and simplify the consolidation process, amongst other cost savings.
Liquidation is a complicated area so we have provided a bundle of information on this website - just see the menu on the left. If you can't find what you are looking for there why not CALL US NOW for confidential, free advice.
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