Double Glazing - company failure reflecting rest of industry
I have noticed a few window companies recently have filed for creditors voluntary liquidation. The problem they have encountered is that for many people, replacing their windows is a big capital expense. Very many people need to borrow to make this expenditure. The problem in a credit squeeze is that the credit available simply dries up. If window replacement companies can't tie up a deal with a funder, or their customer can't arrange his own loan it doesn't take too long for a debt problem to manifest itself. Where an insolvency problem occurs a company will want to know how to deal with it. For many it will be a case of simply placing the company into liquidation, and if required, setting up a new business to purchase the assets and contracts from the liquidator. If any leases exist, it should be possible to transfer the lease via an assignment to the new company as well. However a director should be aware as the landlord may be wise to what has happened and require a personal guarantee from the director, in case the new company also struggles. The directors of a company in financial difficulty does need to be aware of the financial position of the company as he cannot afford the company to trade whilst insolvent, as this exposes him to a allegation of wrongful trading. A winding up can be completed in as little as three weeks and customers need not notice the change in the company fitting their windows. The directors will hold a board meeting and decide if the company can continue to trade. If not they will pass a resolution to wind it up. This is then reported to the shareholders. A liquidator will be instructed to prepare a statement of affairs and call a meeting. The creditors of the company will be invited to the meeting and many will simply vote for the resolution to wind up by proxy. Once the decision has been made to wind up the company the administration of the process is taken by the liquidator. Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company. For all further reading see http://www.helpwithdebtuk.com for personal contact email sthatcher@helpwithdebtuk.com for help with winding up any business For Steve's thoughts see http://steves-debt.blogspot.com Finally if in the UK and you need a friend to speak to call 01162171406 About Author Steve is a qualified solicitor who specialises in debt solutions for businesses and companies alike. From pre-pack administrations to walk through bankruptcys he is always free to talk to. Disclaimer: Article submitters are solely responsible for the content of their articles. ArtiLib can't be held liable for the contents of the articles. Report Abuse | Browse By Category |
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