Insolvency Practitioners in the News – Bournemouth and Dorset
We often submit insolvency related stories and comment to the business editors of some of the key
publications in the Bournemouth and Dorset area. Often, the editors choose to use them as the basis
for articles in their publications, and we are pleased to feature links to these stories on this page.
Simply click the link to read the full story as published.
Dorset Business Focus Magazine – August 2023 Cash is King
We point out that cash is king when it comes to the survival of a business. This article explains why and looks at the actions that companies should take to improve their cash flow and their future prospects.
For the full article: https://issuu.com/mags4dorset/docs/dbf_sept_2023_-_issuu (page 33)
Salisbury and Avon Gazette and The New Stour & Avon Magazine: 12th July 2023: Cash is King for businesses in distress
Cash is the most important thing to a business in distress. This article looks at some key activities that can help a company create a strong cash culture.
For the full articles: https://salisburyandavon.co.uk/latest-issue/ (page 52) and https://issuu.com/unstuck/docs/sa_140723_web/50
Dorset Chamber News: 3rd July 2023: What measures can creditors take against a business? How should directors respond?
Creditor pressure is often one of the first signs of financial difficulty encountered by businesses. If not addressed and action is not taken, creditor pressure can often be the start of a downward spiral that can be highly stressful, leading to bad decisions being taken, insolvency and possible liquidation.
In this article our Licensed Insolvency Practitioners look at the different actions that Creditors may take to get paid and how businesses should respond, because initial, gentle reminders can quickly end up becoming stronger threats or even a Winding Up Petition.
For the full article: https://dorsetchamber.co.uk/what-measures-can-creditors-take-against-a-business-how-should-directors-respond/
Dorset Chamber News 19th June 2023: What are the advantages of a Creditors Voluntary Liquidation (CVL)?
The latest Insolvency Service statistics for Q1 2023 showed that insolvencies remain close to the highest level recorded since 2009. Of these, the Creditors Voluntary Liquidation was by far the most common formal process used to close down an insolvent company. Given the current significant strains on companies, these figures come as no surprise.
There is more to a CVL than the removal of creditor pressure and the prevention of legal action. Plus, a CVL does not mean a director will never work again.
For the full article: https://dorsetchamber.co.uk/what-are-the-advantages-of-a-creditors-voluntary-liquidation-cvl-2/
New Forest Business Partnership 12th June 2023: The Advantages of a Creditors Voluntary Liquidation
The latest Insolvency Service statistics for Q1 2023 showed that insolvencies remain close to the highest level recorded since 2009. Of these, the Creditors’ Voluntary Liquidation was by far the most common formal process used to close down an insolvent company. Given the current significant strains on companies, these figures come as no surprise.
Most directors are aware of the basic facts that once a formal liquidation process is started, creditor pressure is removed and legal action is prevented, but there are more advantages than that.
For the full article: https://mailchi.mp/nfbp/this-weeks-business-support-update-12june-5930952?e=a9bca976e5 *
(*scroll to the bottom of the page on this link)
Bournemouth Echo 2nd March 2023: Company directors warned of responsibilities over insolvency
Failure to comply with duties enshrined in law could lead to financial penalties or disqualification as directors, insolvency experts Antony Batty & Company point out.
Among the responsibilities applying to all company directors is the need to keep accurate and up-to-date records, especially when a business is in financial difficulties and facing the prospect of insolvency.
For the full article: https://www.bournemouthecho.co.uk/news/23354829.company-directors-warned-responsibilities-insovlency/
Bournemouth Echo 15th December 2022: Warning on bounce back loan fraud from insolvency adviser Antony Batty
“THE case of a company director who was convicted of bounce back loan fraud shows the need to take care when winding up businesses, an insolvency firm has warned.
Ben Hamilton, director of Netelco Ltd, filed paperwork to have his business dissolved the day after a £25,000 bounce back loan (BBL) was paid into the company bank account. He was fined £2,500 and given a 15-month prison sentence, suspended for 18 months.”
For the full article: https://www.bournemouthecho.co.uk/news/23191247.warning-bounce-back-loan-fraud-insolvency-adviser-antony-batty/
Blackmore Vale Magazine 9th December 2022: What is a Restructuring Plan and when can it be used?
The Restructuring Plan is one of the most significant changes to insolvency law & practice in recent years, and was introduced in 2020 via the Corporate Insolvency & Governance Act as part of a range of government measures designed to assist struggling businesses. Whilst use of the new procedure was fairly slow at the outset, it has started to become more prevalent as a restructuring tool, and its suitability for SMEs is now being considered amongst Insolvency Practitioners and advisors in light of the recent decisions in the Houst Limited and Amicus Finance cases, which were the first mid-market Plans sanctioned by the UK courts.
Here, Phil Smith, a leading insolvency lawyer and partner at law firm Boyes Turner in Reading, explains what a Restructuring Plan is, who can use them, their pros and cons, and provides a summary of the Houst and Amicus Finance cases.
For the full article*: https://blackmorevale.net/past-issues/58-2/
(*see page 88)
Bournemouth Echo 24th November 2022: Rising costs closing more pubs and restaurants, says Antony Batty
Inflation, staff shortages and soaring energy prices are fuelling a rising number of liquidations in the pub and restaurant industry.
The number of insolvencies among pubs, bars and restaurants rose by 59 per cent to 2,156 in the 12 months to September this year, according to trade journal the Morning Advertiser. And research by the Campaign for Real Ale (Camra) found 485 pubs closed in the first half of 2022, up 90 per cent on the same period the previous year.
Our Bournemouth office of licensed insolvency practitioners says increases in energy prices are a significant factor in a sector already struggling with Covid debts, lack of staff, higher wage rates and rising interest rates.
Elaine Wilkins of Antony Batty in Bournemouth said: “We are seeing a number of liquidations as a result of inflation and a lack of staff hitting businesses which were already weak following the pandemic.
For the full article: https://www.bournemouthecho.co.uk/news/23145454.rising-costs-closing-pubs-restaurants-says-antony-batty/
Bournemouth Echo 12th August 2022: More directors will go to jail for bounce back loan fraud, says Antony Batty
MANY more company directors may go to jail for fraudulently claiming coronavirus bounce back loans, an insolvency practitioner has said.
Abdulrazag Zagroba, 54, was sentenced to two years in prison by Manchester Crown Court following the first successful prosecution of a fraud case involving the Covid loans.
The court heard he applied for a bounce back loan of £20,000 without telling the bank that he had applied less than two weeks earlier to dissolve his business Amigo Pizza (Manchester) Ltd.
For the full article: https://www.bournemouthecho.co.uk/news/20622126.directors-will-go-jail-bounce-back-loan-fraud-says-antony-batty/
Dorset Business Focus magazine August 10th 2022. First Director goes to prison for Bounce Back Loan Fraud
On 24th June 2022, Abdulrazag Zagroba, the sole director of Amigo Pizza (Manchester) Limited, was sentenced to 24 months in prison for Bounce Back Loan (BBL) fraud, the first successful criminal prosecution for this crime by the Insolvency Service. He was also disqualified as a director for 7 years.
For the full story: https://dorsetchamber.co.uk/first-director-goes-to-prison-for-bounce-back-loan-fraud/
Dorset Business Focus magazine July 12th 2022. What are the options for paying back a Bounce Back Loan?
We are seeing increasing numbers of businesses struggling to make their BBL repayments, so this advice from Jo Wilmott of the Minster Partnership is timely and very useful. As always, the sooner advice is taken the better the likely outcome.
For the full story: https://dorsetchamber.co.uk/what-are-the-options-for-paying-back-a-bounce-back-loan/.
Dorset Business Focus magazine. June 22nd 2022. The potential misuse of CBILs/CLBILs/BBLs – an Insolvency Practitioners Perspective.
Freezing orders, Winding up Petitions, Director Disqualification and Criminal Proceedings can all be the result of misuse. But what if you genuinely cannot repay?
For the full story: https://dorsetchamber.co.uk/the-potential-misuse-of-cbils-clbils-bbls-an-insolvency-practitioners-perspective/
Bournemouth Echo 22nd June 2022: Penalties for misusing coronavirus loans, warns insolvency firm Antony Batty
BUSINESSES have been warned they could face penalties including winding-up orders and director disqualifications if coronavirus loans have been misused or improperly applied for.
For the full article: https://www.bournemouthecho.co.uk/news/20228398.penalties-misusing-coronavirus-loans-warns-insolvency-firm-antony-batty/
Dorset Business Focus magazine 1st June 2022: Antony Batty and Company celebrates 25th Birthday
Insolvency practitioner and turnaround specialist Antony Batty & Company is celebrating 25 years in business as licensed insolvency practitioners. For the full story: https://dorsetchamber.co.uk/antony-batty-co-celebrates-its-25th-birthday/
Dorset Business Focus magazine 22nd February 2022: Bounce Back Loans – Lifeline or potential headache?
Many businesses cannot repay the loans. Directors are asking us what can they do? Getting the right advice is vital. This has caused confusion amongst many businesses who have taken out a BBL and now find themselves in a position where they cannot repay the loan. The question now being asked by many directors is what can they do? For the full story: https://dorsetchamber.co.uk/bounce-back-loans-a-lifeline-or-a-potential-headache/.
Dorset Business Focus magazine 10th February 2022: Directors must remain vigilant to avoid Wrongful Trading.
The Covid-19 related suspension of Wrongful Trading Provisions ended on 30th June 2021; however, the related business difficulties are still with us. For the full story: https://dorsetchamber.co.uk/directors-must-remain-vigilant-to-avoid-wrongful-trading/
Bournemouth Echo 10th January 2022: Warning that bosses face Covid Bounce Back Loan probes
COMPANIES with outstanding coronavirus bounce back loans can no longer be dissolved by their directors without the possibility of an official investigation, a business adviser has warned. For the full story: https://www.bournemouthecho.co.uk/news/19833254.directors-dissolved-businesses-face-bounce-back-loan-probes/
Dorset Business Focus magazine 6th January 2022: New legislation over Company Dissolution, Bounce Back Loans and other Covid Funding
In this article, we look at the new legislation being introduced around the Dissolution of Companies and what this means for Directors of Dissolved Companies. For the full story: https://dorsetchamber.co.uk/new-legislation-over-company-dissolution-that-directors-need-to-understand-about-bounce-back-loans-and-other-covid-funding/