Before we can consider the various solutions available for an insolvent business, it is important to first understand what the term insolvent means, and when a business is insolvent.
A business is insolvent when it has insufficient assets to cover its liabilities/debts or is unable to pay debts when they fall due.
Conversely, when there are sufficient assets to cover liabilities or to pay debts as and when they fall due, a business is solvent.
We can administer different solutions in relation to insolvent businesses in financial difficulty. The following sections give an overview of the different procedures we can employ: