Insolvency Practitioner | My Insolvency
Insolvency Practitioner
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Stanley Coltman: Hello, my name is Stanley Colton, co-founder of My Insolvency. Today, I'm speaking with Simon Thomas, a licensed Insolvency practitioner and director of Moorfields Corporate Recovery. I'm looking to explore with Simon, the issues, concerns and aspirations of directors facing formal insolvency proceedings.
Stanley Coltman: What are the warning signs to directors of potential problems on the horizon?
Simon Thomas: I think that when companies start encountering difficulties, they will have already identified issues that need to be addressed. And if they're not addressed efficiently, what you'll then see is the company suffering, and when we see a company in difficulty, what we would typically see would be creditor days going out, when they're not paying creditors on time. We would see HMRC debt probably going up as directors are more reluctant to put off paying their suppliers rather than Crown debt, we see that going up. You might see problems with landlords, where rent hasn't been paid on time. You would see, on the VAT side of things, there may be Time To Pay arrangements put in place which would obviously indicate that the business is in trouble. And as things progress, these things will get worse and worse, and the directors will have an opportunity to do more if they... So the quicker they are, the more they can do. If they wait until somebody else decides to take some action against the company, the opportunities to try and avoid insolvency or take other better steps will be lost. So when you see any of these signs and the position deteriorating, so each month the position gets worse and worse, that's when you should start taking action as quickly as possible.
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