Independent deals advice
Lenders, creditors, companies and individuals can all be negatively impacted when a business gets into difficulty. In our experience, early intervention can considerably increase the chances of a positive outcome for all concerned.
How KPMG can help
- Receiverships We have extensive experience of Receiverships and in identifying the most beneficial routes for a secured creditor to maximise its recovery. The focus is on maximising the asset realisations. We will also work with secured creditors to identify the most practical and economic appointment so that unnecessary costs can be minimised.
- Members’ Voluntary Liquidation A Members’ Voluntary Liquidation is a mechanism whereby a solvent company, acting through its directors and members, decides to wind-up a company, primarily for the purpose of realising its assets and distributing the surplus to its shareholders.
- Creditors’ Voluntary Liquidation A Creditors’ Voluntary Liquidation is usually initiated by the insolvent company, acting through its board. In a Creditors’ Voluntary Liquidation, the liquidator is primarily concerned with the interest of the creditors.
- Court Liquidation A Court Liquidation is commenced by order of the Court on foot of a petition. The petitioner in this type of liquidation is most commonly the company itself or a creditor who will petition on the ground that a company is unable to pay its debts.
An application for an administration order can be made to Court by the directors of a company, provided the Court is satisfied that one of the following four objectives will be achieved:
- The survival of the company and the whole or part of its undertaking as a going concern
- The approval of a voluntary arrangement
- The sanctioning of a compromise or arrangement under Article 418 of the Companies (NI) Order 1989
- A more advantageous realisation of the company’s assets than would occur in a winding up.
Having been appointed Administrator, it is our job to manage the affairs, business and property of the company. Our primary objective is to ensure company rescue as a going concern. If this is not possible, we examine the company’s range of options, with our ultimate objective being a better result for creditors than any other form of Insolvency proceedings by realising the assets of the company.
KPMG’s Cash Management team works with businesses to improve their cash flows in order to help reduce debt, fund growth, and deliver better returns to stakeholders.
Through a Company Voluntary Arrangement (CVA), the Directors of a company can put a proposal to its members and creditors for payment of part or all of its debts over a period of time.
Our objective is to assist the directors in formulating this proposal to put to creditors, thereby allowing the company a fresh start and allowing creditors to increase their realisations compared to a Liquidation scenario. As Supervisor of such an arrangement, our role is to report to creditors on the progress of the CVA.
KPMG’s Corporate Restructuring (CR) unit is a leading provider of turnaround strategies to underperforming companies. Our CR team works with stakeholders to restructure businesses that are experiencing financial difficulties, and seeks to rebuild corporate performance and restore stakeholder confidence.
KPMG’s Engineering & Construction group (ECG) comprises construction professionals (including quantity surveyors, engineers, building surveyors, general practice surveyors, planners and accountants) who recognise and are well-versed in the complexity of capital projects and the advantages of early identification and management of risks to help ensure that your goals are realised.
Liquidation is a process by which the assets of a company are realised and the proceeds distributed to the creditors and members in the order of priority as determined by company legislation.
A receivership is a process by which a creditor (usually a financial institution), who holds a charge on the assets of a company as security for its debts, appoints a Receiver to recover the money due to it.
The function of a Receiver appointed by a debenture holder is to take possession of the assets, subject to the debenture holder’s charge. Typically, the Receiver will then realise those assets and pay off the debenture holder. However, depending on the terms of the appointment, the Receiver might decide to continue trading with a view to increasing the value of the company’s assets or, alternatively, the Receiver might sell the business as a going concern.
Our objective is to sell the business as a going concern to safeguard the jobs of the employees and help maximise the return for the secured creditor.
A Members’ Voluntary Liquidation (MVL) is a formal process used to wind down a solvent entity that has ceased trading or is dormant.
- Do you have dormant entities within your group structure no longer required?
- Are you looking for a tax efficient way to extract funds for shareholders on cessation of trade?
- Do you have funds that have reached their end of life and need to be wound up?
Get in touch
For guidance on any aspect of restructuring, please contact Mark Collins, Head of Deal Advisory. We'd be delighted to hear from you.
Head of Deal Advisory
KPMG in Ireland