Possible Outcomes

The possible outcomes for a business facing financial difficulty are turnaround, business rescue, CVA or winding up.

The aim of an insolvency practitioner is to help you identify the most appropriate process for your and ideally returning it to a sustainable position.


Company turnaround is a plan to halt a terminal decline in a company’s profitability and/or its ability to trade.

A proactive and timely approach as and when issues arise with both creditors and suppliers can result in the rescue of the business with the focus on growth once more.

Typical activities may include financial restructuring, negotiation with creditors to extend payment deadlines, raising finance, and implementing solutions to enhance business efficiency.

Business Rescue

Business rescue can involve the company entering administration with a qualified insolvency practitioner acting as administrator.

The terms of the administration proposals will prevent legal action being commenced or stop existing legal proceedings, giving the company an opportunity to trade and maximise realisations for the benefit of creditors.

Another method of business rescue is a Company Voluntary Arrangement (CVA). This is an agreement with creditors to pay make contributions from future trading in order to make a payment to creditors. If accepted it enable the business to trade and survive. This is suitable for companies able to demonstrate that creditors can be paid from future trading. This will also suit creditors who will be happy that measures are being taken to pay what is owed rather than having to write debts off.

Voluntary/Compulsory Winding Up

This occurs when there is no alternative other than place the company into an insolvent liquidation. The company will cease to trade and assets will be realised for the benefit of creditors and to fund the liquidation process. An insolvency practitioner will work with you and on behalf of your company to ensure the right steps are taken. Remember, the faster you act, the more chance you have of saving your business.