Business rescue options

Business rescue means saving a viable company rather than closing it, and in the UK there are several formal and informal routes. Informal options include renegotiating with creditors, agreeing a Time to Pay arrangement with HMRC, raising finance or cutting costs. Formal options include a Company Voluntary Arrangement, which lets you repay historic debt over three to five years while trading; administration, which protects the company with a moratorium while a rescue or sale is arranged; and a moratorium under the Corporate Insolvency and Governance Act 2020. The key question is viability: can the business trade profitably once the immediate pressure is dealt with? If yes, rescue usually beats liquidation for directors, staff and creditors alike. If no, an orderly liquidation is more honest. A Licensed Insolvency Practitioner can assess viability and recommend the right route, often on a free first call. Corporate Insolvency and Governance Act 2020; Insolvency Service

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