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Graywoods welcomes new government insolvency support package
The government’s announcement of new tools to improve rescue opportunities for struggling companies has been welcomed by experts at Graywoods, the leading independent insolvency and turnaround practice.
The plans include giving a breathing space to provide viable companies with more time to restructure or seek fresh investment to avoid moves by creditors.
There will also be a rescue process to prevent suppliers terminating contracts because a company has entered an insolvency process.
And at the same time new measures are also being introduced to help ensure creditors, employees and other stakeholders are treated fairly by the directors of struggling companies.
These proposals will include fresh powers for the Insolvency Service to investigate directors of dissolved companies, enhancements to existing antecedent recovery powers and the ability to disqualify directors of holding companies who unreasonably sell insolvent subsidiaries.
“We welcome any plans by the government that will protect companies struggling to survive in a tough trading environment but which also ensure a fair approach to both sides,” said Deborah Lockwood, Director of leading Sheffield insolvency and business turnaround specialists Graywoods.
“It is particularly encouraging to see that the government is understanding that all some companies need is the chance to begin discussions of a rescue plan before they feel pressure from creditors.”
Deborah added that the collapse in recent months of some major High Street names highlighted the fact that there was a need to review the way in which businesses are able to restructure.
“It is worth pointing out that the government is fairly busy at the moment with some very big issues so the fact that they are thin king so actively about business turnaround shows the importance they are attaching to this particular issue.
“The World Bank consistently ranks the UK very highly as a country which it is good to do business with and a good place too to rescue businesses that are struggling.
“These measure can be seen very clearly as the government’s way of making sure that continues.”
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If your business is struggling to cope with poor cashflow and financial uncertainty, call Graywoods today to find out how we can help.
Call Deborah Lockwood today on 0114 285 9500 for friendly, impartial advice. We can help.