In fact, this is not the case at all. There are a number of methods that can be applied in order to “rescue” a failing business and consequently prevent its slide into insolvency.

For any businesses that may be experiencing difficult times, there are a range of areas within the business that can be addressed in order to begin to repair the situation. The expert lawyers and accountants at The Quinn Group are able to assist you and provide advice in relation to all business restructuring areas including the following:

• Negotiating with lenders to reschedule debt repayment arrangements, this will give the business some much needed breathing space

• Organising additional facilities, such as a line of credit, overdraft or consolidating debts over a longer term to smooth out cash flow spikes

• Providing advice regarding the reorganisation of your operation, in particular, how to cut costs, and/or reallocate resources

• Focusing on generating cash flow by working with debtors to bring in monies that are owed and reducing any unnecessary expenses

• Negotiating with major customers to increase prices, shorten payment terms and even increase orders

• Organising for an injection of capital by bringing in fresh equity

The restructuring process is currently considered to be “informal” as it is not strictly governed by legislation. The initial purpose of restructuring is to preserve the assets of the business, but it is also a preferable outcome that the business as a whole remains a going concern.

One of the main benefits of a restructuring or rescue program is that it is private. Formal administrations and receivership procedures are generally widely publicised. This can often result in a more difficult negotiating process with creditors and customers of the business and can also alert the competition to a major opportunity within the marketplace.