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Liquidation letter to employees: What to include
Liquidation letter to employees: What to include If your business is facing liquidation, it can be a worrying time. This is particularly true for employees, as the uncertainty can leave them feeling anxious and unclear about the future. They will...
Read moreInsolvency vs illiquidity: What sets them apart?
Insolvency vs illiquidity: What sets them apart? Insolvency and illiquidity are two terms that are often used to describe a business that is experiencing cash flow problems or operational inefficiencies. However, both have very different meanings, which we will explore...
Read moreAdministration vs receivership: Understanding the difference
Administration vs Receivership: Understanding the difference When a business faces financial issues and struggles to fulfil its financial obligations, such as paying its debts on time and covering its wages bill, it may be considered to be insolvent, which...
Read moreInsolvency vs liquidation: What’s the difference?
Insolvency vs Liquidation: What's the difference? When it comes to business finance, it can be hard to understand all the jargon and technical terms. Not knowing what they mean or how they differ from one another can make it...
Read moreWhat is balance sheet insolvency?
What is balance sheet insolvency? There are many different types of insolvency, all of which refer to when a company is unable to pay its liabilities when they are due. A common, and perhaps less serious type of insolvency,...
Read moreWhat is Pre Pack Administration?
Pre pack administration is one of the legal processes used to close an insolvency company while preserving the value of a business. In other words, pre pack administration is used to help manage a struggling business and give it...
Read moreTrading when insolvent: The risks, law and legal implications
Trading when insolvent: The risks, law and legal implications If your company is suffering financial difficulty and can no longer repay its debts, or the amount you owe is greater than the value of your assets, your company is classed...
Read moreLiquidation: Who gets paid first?
Liquidation: Who gets paid first? Suppose your business has become insolvent and has either been through a successful administration or perhaps the administration process wasn’t deemed viable for your circumstances. In these cases, there is a good chance that your...
Read moreAdministration vs liquidation: Understanding the differences
When a business faces financial difficulties, there are two insolvency practices which are the most commonly used, and they are often confused. Administration and liquidation are both governed by the Insolvency Act but are very different processes, and each...
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