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Our Services

Here at KRE, we have the expertise to offer a full range of corporate recovery services. We tailor our approach for each client that we meet depending on the company history, current financial situation, and overall aims and objectives.
On this page we’ve outlined how some of the most common corporate recovery procedures work. However, as every case is different, we’d encourage you to make contact with us as soon as possible so we can provide the best possible solution, taking your individual circumstances into account.

At KRE Corporate Recovery LLP we have access to a wide range of asset-based lenders and can assist in unlocking any particular asset of the company be it invoice finance, stock finance, or general asset finance.

Before any corporate decision is taken to deal with a company’s distress there is almost certainly the need to understand not only the operational side of the business but also, and more importantly, the financial implications of any proposed action.

At KRE Corporate Recovery we offer full/partial IBR’s which will assess the past trading performance and will then move onto forecasting various scenarios. The report will be presented and agreed with the board and can then be used as a presentation tool to any of the company’s stakeholders, the purpose of which will be to demonstrate a clear strategy going forward which will underpin the request for support/further time to deal with any current issues.

LPA Receivers are appointed by the holders of (usually) mortgagors. Historically LPA Receivers are involved when a party defaults against property repayments which allows the Charge Holder to exercise rights under the charge which could result in the asset (usually property) being sold by a duly appointed agent who does not necessarily have to be a licensed Insolvency Practitioner.

It is important to note that the LPA Receiver is only responsible for the asset under their control and not for the entire business operation and as such you can find a scenario where a property is being sold and the Directors have then to take separate action to deal with the business.

Administrative Receiverships are very rarely used these days. Essentially the holder of a “Debenture” and specifically the floating Charge element of the debenture (again usually Banks or Asset Based Lenders) have the right to serve “formal demand” on a company in default.

If the company fails to honour the demand (usually for full repayment of the debt) the Charge holder can appoint Joint Administrative receivers’ whose role is similar to that of Joint Administrators.

Essentially the Joint Administrative receivers can either trade the business with a view to sale or close down the business operations and realise assets on a restricted realisation basis.

Since 2004 the Administrative Receivership is rarely used as a consequence of the Administration regime.

An Individual Voluntary Arrangement (IVA) is a formal debt repayment arrangement between you and your creditors, which can freeze interest and charges. A review of your financial position is undertaken and based on this a proposal is put to your creditors detailing the assets and income you have available and an affordable offer for repayment, usually over a period of 3 to 5 years, is made. Creditors then have the option to accept, reject or modify this proposal.

IVA’s are a popular alternative to Bankruptcy for an individual, as the restrictions are less severe, for example a company director or sole trader can continue to manage their company and the individual has a greater amount of control over the repayment offer made to creditors.

Each IVA is tailored to meet each individual’s circumstances, which may allow certain assets which would normally be seized and sold in Bankruptcy to be retained by the individual and prevents creditors taking further legal action or pursuing debts due.

A Members voluntary Liquidation is a solvent winding up where all creditors are paid in full and a return is made to the company’s shareholders.

The Board of directors will, resolve to wind the company up and will call a meeting of the Shareholders.

The Board will have nominated a licensed insolvency practitioner to act as Liquidator and at the shareholders meeting this nomination will be agreed together with passing the resolution to liquidate the company.

Once appointed the liquidators will settle any outstanding creditor claims and then distribute any remaining assets by way of a distribution in specie or payment of a dividend to the shareholders.

The liquidator will advertise for any creditors claims and once the date to claim has expired and the company’s tax position has been finalised the liquidation is finalised and thereafter the company is dissolved and the company is ultimately struck off from the companies register.

KRE Corporate Recovery LLP will undertake all of the work necessary in relation to calling the meetings of members and preparing the necessary Declaration of Solvency, resolutions and distributions of assets or funds.

Unlike the voluntary liquidation this process can be instigated by the director or the creditors and in both cases the result is an application to the Court to pass an Order to liquidate the company.

In the Directors case, the majority of directors will need to put forward a statement that the company should be would up compulsorily and the Court will, at the hearing grant the order

In the case of a creditor’s application, such an application will usually follow service of a Statutory Demand which has not been challenged by the company, leaving the creditor free to make an application for Compulsory winding up.

In either case of a Compulsory winding up the Official Receiver is usually appointed as Liquidator in the first instance and will then either manage the company’s affairs until dissolution or will subcontract out the management of the company to a private Practitioner but this is very much dependent on the remaining asset base of the company.

KRE Corporate Recovery LLp will assist in the drafting of the Court paperwork as well as liaising with all creditors.

The Board of directors will, at a meeting pass a resolution to convene meetings of the company’s shareholders (often they are also the directors) and creditors, roughly in 14 day’s time to consider liquidating the company.

The Board will have nominated a licensed insolvency practitioner to act as Liquidator and at the shareholders meeting this nomination will be agreed together with passing the resolution to liquidate the company.

The Creditors meeting will follow and the meeting will vote (by way of a simple majority of the creditors votes cast by value) to retain the Directors nominated Insolvency Practitioner or appoint the creditors choice of Practitioner.

Once appointed the Liquidators role is essentially one of realising the remaining assets and distributing the net proceeds to the creditors, thereafter the company is dissolved and the company is ultimately struck off from the companies register.

KRE Corporate Recovery LLP will undertake all of the work necessary at all stages of the assignment including preparation of all documents and interfacing with the company’s creditors.

The purpose of liquidation is to bring about the closure of a company and the cessation all of its business activities. There are two types of “Insolvent” liquidation. Members Voluntary Liquidation is a “solvent” winding down of the company’s affairs and we’ll deal with this separately below.

Company voluntary arrangement also known as CVA is a legally binding procedure by which an insolvent company reaches an agreement with its creditors to repay its debts – in full or in part – at an arranged amount over an agreed period of time.

Under normal conditions, creditors receive between 25 per cent and 100 per cent of the debt owed to them. This is dependent upon what the company can afford to repay. The CVA term is typically between 2 to 5 years in length.

The CVA must be administered by a Licensed Insolvency Practitioner. The practitioner will examine the company’s history, reasons for failure and financial circumstances and will thereafter submit a plan to all the creditors, which will include full details of the company’s assets and liabilities, offers for repayment of debts, and the proposed duration of the CVA.

Three quarters of the commercial creditors must agree to accept the terms of the CVA proposal, after which the arrangement becomes binding on all creditors. The company then makes repayment on the agreed term (usually monthly or quarterly) directly to the insolvency practitioner who then distributes the payments to the creditors on a periodical basis.

While bound by the terms of a CVA, creditors may not start or pursue legal action against the company — this can be of enormous benefit to the insolvent business as it allows continued and uninterrupted trading free of the historic debts.

Once the arrangement has successfully implemented, the company returns to the directors and continues to trade as normal.

Administration is a procedure where the directors make an application to the Court which will then provide the company with the protection afforded by an Administration. The Administration protects your company against creditor action which in turn will give you vital breathing space with which to consider a range of options available to the Company.

Prior to making the application the directors will work alongside the company’s debenture holders (usually its Bank) and the nominated Insolvency Practitioner who will have to be approved by the Bank.

The purpose of these Pre Administration meetings is to set out the strategy that is to be implemented once the Administrators are appointed.

Throughout the course of the administration Licensed Insolvency Practitioners become responsible for managing the day to day activities of your business. The practitioners will work towards saving your business and aim to impede any further decline in the company’s financial position.

The two most common types of Administration are a Trading Administration and a Pre-packaged Administration and the Partners at KRE Corporate Recovery LLP will explain in detail the two processes and will aim to find the best one for the company.

Once the Administration objectives are achieved a number of options then remain which will be discussed with the Joint Administrators.

KRE understand that there can be enormous pressure when your company is in financial distress, but we encourage you to talk to someone as soon as possible to give the best possible chance of recovery.

In some cases, there will be no requirement to enter into a formal insolvency process and a Turnaround strategy can often be implemented with a little guidance and support.

At KRE we offer you Turnaround management which involves the determining and setting in stone a strategic plan for corporate restructuring of your company during a financial crisis. Our experts will perform an analysis of your company’s current condition from which we will determine the main reasons for the financial inconsistency of the enterprise as well as its unprofitability.

Following on from the analysis we will work with you towards implementing the most effective business strategy on the basis of our expertise in this field.