Is there anybody out there with this experience?

[nmckenna]

Hi all,

We (two Directors) are wanting to close our limited company of 14 years, as it has never recovered from the COVID period... despite our best efforts.

We have an unsecured bounce back loan with circa £20K o/s, I think we have already paid back £20K, and a secured overdraft facility of £25K which we are NOT using. The situation is complicated by the following factors...

• We cannot afford to pay an IP
• The company is still trading, so no DS01
• Santander (bounce back loan) would be the only creditor... No HMRC or VAT etc.

I am looking for someone to help me try and navigate these choppy waters, legally and safely!

All and any advice is much appreciated.

 

[ChrisCallaghan]

Hi @nmckenna ,

I'm sorry to hear about your situation. I'd be happy to offer you some free advice about what options are available when a liquidation is unaffordable.

I have spaces in my diary free for tomorrow if you'd like to message me your details and availability.

 

[Daybooks]

I would take up @Chris Callaghan ’s offer.
If not already done so, then as still trading, consider preparing a financial plan into the immediate future which should confirm your decision or indeed otherwise. You may need it to demonstrate you are not trading illegally but am sure Chris will advise.

Very best of luck.

 

[nmckenna]

Hi @nmckenna ,

I'm sorry to hear about your situation. I'd be happy to offer you some free advice about what options are available when a liquidation is unaffordable.

I have spaces in my diary free for tomorrow if you'd like to message me your details and availability.

Thanks Chris, it is much appreciated... are you free around 10.30 tomorrow morning, and what is the best number to get you on?

 

[ChrisCallaghan]

Thanks Chris, it is much appreciated... are you free around 10.30 tomorrow morning, and what is the best number to get you on?

Hi, I've just sent you a direct message.

 

[ChrisCallaghan]

Hi @nmkenna,

I've messaged you asking you to share your contact details. Alternatively you can call me on the number listed on this post's signature.

 

[nmckenna]

Hi @nmkenna,

I've messaged you asking you to share your contact details. Alternatively you can call me on the number listed on this post's signature.

Hi Chris, I forgot to say the Co. is registered in NI, is that relevant? p.s. I was born and bred in Sheffield! regards, Nick

 

[ChrisCallaghan]

Hi, still all the same processes as discussed.

 

[Gyumri]

We have an unsecured bounce back loan with circa £20K o/s,

That isn't your personal responsibility to repay. All you can do in this situation as best you can is to file the latest accounts and tax return which may enable you to then claim terminal loss relief on any tax you paid previously.

The appointment of an IP will enable the company to be dissolved in a gentlemanly fashion. However, that will cost you money which you haven't got.

You will need to look at the terms of the secured overdraft facility to ensure that you haven't unwittingly given any personal guarantee to secure the company's BBL.

As far as I recall banks are not able to take personal security over a BBL whether directly or indirectly.

If that is all clear then there is now't you can do and the company will have to remain dormant until some busybody like the bank wants to wind it up.

However, I would speak to Santander because you obviously have a good relationship with them which you don't want to spoil.

The appointment of an IP would enable the bank to recover its loan from the Government and so the bank may allow you to draw on the secured overdraft to pay a few thousand to appoint an IP - but you will be on the hook to make good the IP's costs.

I would therefore stipulate a cap on the IP's costs.

 

[nmckenna]

OK today's question is (they'll stop soon, promise!)... what do we need to do to formally cease trading (i.e. Companies House)?

 

[Scalloway]

Strike off your limited company from the Companies Register

Strike off your limited company from the Companies Register

How to close down your limited company by getting it struck off the Companies Register

www.gov.uk

 

[nmckenna]

Thanks Chris, it is much appreciated... are you free around 10.30 tomorrow morning, and what is the best number to get you on?

 

[Lisa Thomas]

FYI Chris replied to you above...