News and Blog - Page 2

We are thrilled to announce that Purnells are again Finalists for the 2021 TRI Awards in the category of: TRI Company Award for Business Continuity 2021.

A Law of Property Act Receiver, or LPA Receiver, is appointed under Section 109 of The Law of Property Act 1925 when a Lender, or mortgagee, is entitled to exercise the power of sale granted under the Law of Property Act 1925.  What that means in plain English, is that if the borrower, or mortgagor, has breached the terms of their mortgage, then the Lender’s power of sale will have arisen, which means they can appoint a LPA Receiver.

The temporary measures brought in to support businesses from insolvency during the pandemic are due to be phased out from 1 October and the Insolvency Service have issued the following information...

If your company has had a County Court Judgment, or CCJ, made against it, then the creditor who obtained the judgment has several different options available to them to enforce that judgment.

Extension to Restrictions on Winding Up Petitions & Commercial Evictions...

Given the new landscape we are all living and working in due to Covid-19, I wanted to update a blog that we first produced over four years ago, which looked at the benefits and drawbacks of a Creditors Voluntary Liquidation ("CVL") versus a Strike Off Application.

On the 10 May 2021 the Government published it's response to the Debt Relief Order (DRO) consultation on raising the threshold for the three monetary eligibility requirements that an individual must meet before being able to obtain a DRO.

A Company Voluntary Arrangement, or CVA for short, is a legally binding agreement between the Company and its creditors, which is designed to allow the Company to continue to trade while it sorts out its financial problems.

With a revised Statement of Insolvency Practice Number 13 (“SIP 13”) becoming effective on the 30 April 2021, it is a good time to review the topic of phoenix companies as SIP 13 deals with the disposal of assets to connected parties.

On 8 October 2020, the Government published its report to improve the transparency of pre-pack sales in administrations. This report was accompanied by a set of draft regulations to increase independent scrutiny of sales to connected parties.

A Members Voluntary Liquidation, or MVL, is an insolvency process for solvent companies, where all creditors will be paid in full and the surplus assets are distributed to the shareholders, often with advantageous tax benefits.

With the Chancellor looking at ways to raise taxes due to the Coronavirus Pandemic, many directors and shareholders of owner managed businesses are taking the view that it is better to get their hard-earned funds out of their businesses before any changes, and potential increases in tax, are made.

In Insolvency proceedings there is a set hierarchy to be followed when paying out dividends to the various classes of creditors...