R2 Advisory provides integrated support to management, lenders, investors and other stakeholders and in relation to contentious and non-contentious personal insolvency matters.
Non-insolvency solutions include conducting independent business reviews and assisting with cash flow management to enable businesses to implement a range of business restructuring solutions.
Wherever possible, we aim to help struggling businesses recover and return them to a sound financial footing. Timing and expertise are critical in these cases, so clients always have direct access to the director leading their case. All client relationships are director-led and we pride ourselves on providing practical and pragmatic advice.
We have established relationships with corporate financiers, asset based lenders, distressed investors and private equity providers who are prepared to consider supporting businesses in times of financial distress where support would often not be financed by more mainstream lenders.
A company in administration is under the control of a Licensed Insolvency Practitioner and the protection of the court. Creditors are prevented from taking any legal recovery action against the company, except with the court’s permission or consent of the administrator. The objectives of administration are either to rescue a company as a going concern, or restructure the business to achieve a better return than in liquidation. In the alternative administration can be used to recover funds for secured creditors.
Liquidations (CVL & MVL)
Often referred to as ‘winding up’, Creditors Voluntary Liquidation (CVL) is the most common corporate insolvency procedure. A Liquidator is appointed to realise the company’s assets and distribute the proceeds in a prescribed order of priority. The liquidator also has extensive powers to investigate the company’s affairs and the conduct of its directors and to recover funds for the benefit of the insolvent estate.
Members Voluntary Liquidation (MVL) procedures, allow solvent companies to return capital to their shareholders in a tax efficient manner, allowing the company to ultimately be removed from the register at Companies House.
Company Voluntary Arrangements (CVA) &
Individual Voluntary Arrangements (IVA)
Under a CVA or IVA, an insolvent company or individual can propose a repayment or restructuring plan, supervised by a Licensed Insolvency Practitioner, whereby creditors formally agree to accept a compromise in full and final settlement of monies owed to them by the company or individual.
Bankruptcy involves the administration of the affairs of an insolvent individual. The Trustee in Bankruptcy, a Licenced Insolvency Practitioner, will realise the assets of the bankrupt’s estate for the benefit of creditors. The Trustee in Bankruptcy also has extensive powers to investigate the bankrupts’ affairs and to recover funds for the benefit of the insolvent estate.