R&T Turnaround and Recovery

What is a Transaction at an Undervalue? A Transaction at an Undervalue is when a director/company transfers or sells company assets such as stock, equipment, or property at a price that is deemed below market value or for no payment at all. Transactions at undervalue can include: - Assets that are 'gifted' to connected parties where no payment is made - Assets transferred to an independent third party, again with no payment - Assets sold for an amount considerably under market value All these transactions can be seen as attempts to reduce the returns available to creditors. One thing that business owners don't consider when they need quick cash and sell assets, is how this can come back to bite them later if they end up in an insolvency procedure and market value hasn't been paid. Ramifications include; - Disqualification as a director - Personal liability for some or all of the company's debts - Fines - Criminal prosecution All transactions/sales should have board approval, the asset should be professionally valued and sale documentation should be retained. If you need some guidance, please get in touch! 📞 020 3576 3854 📧 info@rtturnaroundandrecovery.co.uk

Are there any Metalwork or Fabrication businesses in my network? If so, please get in touch! I might have a great acquisition opportunity for you. - 40-Year-Old Business - Great Reputation with a diverse client base - Was part of a larger group - Profitable If you know anyone in the sector who also might be interested, please tag them in the comments!

Project Mechanic We are still in the marketing stage for a family-run mechanics in the North Yorkshire Region. Please share with connections who might be interested. Key Details: - Company established 2007 - Profitable - £115k net profit 2023 - 2 Full-Time Employees not including directors (Not involved in day-to-day) - All aspects of vehicle maintenance and repairs - Low rent with the option to bolt on another unit giving an extra bay (4 currently) - Major opportunity to expand the operation, current owners are turning away work - Current owners will stay on for a period to provide a smooth handover - Very little competition in the local area - Loyal customer base More Information can be provided on the signing of an NDA. Email info@rtturnaroundandrecovery.co.uk #Mechanics #BusinessForSale

5275 Distressed Businesses within our 5-mile radius. We ran some searches via Red Flag Alert, tracking businesses in our local area. In the 5 miles from where we are based, there are potentially 5275 distressed businesses, of which 806 are at risk of immediate insolvency proceedings. That is a lot of directors needing help. The breakdown of businesses by categories is shown below. If you'd like to know the health of businesses in your immediate vicinity, give us a shout! 📞 020 3576 3854 📧 info@rtturnaroundandrecovery.co.uk #Turnaround #Restructuring #Insolvency

ISG's collapse will undoubtedly have a domino effect throughout the construction sector, bringing more businesses down with it. 2200 people are now looking for a new job with a further 200 to follow once the company's affairs have been wound down. There will be many more from sub-contracting firms who don't make it. If anyone needs any support, please get in touch 📞 020 3576 3854 📧 info@rtturnaroundandrecovery.co.uk

TGI's owner Hostmore files for Administration. Hoping for a positive outcome for the 3000 staff employed by the business. #insolvency #TGIs

Our team are out and about at Accountex Summit Manchester today. If there are any accountants in our network that fancy a coffee, or something stronger, let us know!

Could TGI Fridays be about to disappear from the UK high street?

What is Retention Of Title? A Retention of Title (RoT) clause is a provision in a sales contract that allows the seller to retain ownership of goods until certain conditions are met, usually full payment by the buyer. This concept is particularly important in the context of insolvency because it protects sellers by allowing them to reclaim their goods if the buyer becomes insolvent. If a RoT clause is not in place then the supplier would not be able to claim their goods back and would become an unsecured creditor of the company. As an unsecured creditor, the seller would in all likelihood not receive any payment for their goods potentially causing them some financial difficulty too. There are some limitations to a RoT claim and it is not always a straightforward process to make a claim. The claim may be unsuccessful if the goods have been mixed with others, transformed, or sold during the normal course of business and therefore unrecoverable. Want to know more? Give me a shout! 📞 020 3576 3854 📧 info@rtturnaroundandrecovery.co.uk

Interest rate cuts - do they help? Interest rate cuts were welcomed by businesses but thinking about it, a .25% drop is not going to help too many businesses. - For businesses with substantial debt, a 0.25% reduction is relatively small. Their overall liabilities remain high and interest repayments will still be a huge burden, - Many businesses have loans with fixed interest rates or terms that don't immediately reflect changes in the interest rate. It will take time for the reduction to be reflected in their borrowing costs, if at all. - Highly leveraged businesses are considered riskier for lenders. As a result, they are subject to higher risk premiums on top of the base rate regardless of a drop. - Highly leveraged businesses are already at or near their borrowing capacity. A slight reduction in rates does not enable them to take on new debt for expansion or investment. - There are also other economic factors to consider. Businesses face numerous challenges beyond interest rates, such as inflation, supply chain issues, or reduced consumer spending. A small rate cut will not address these broader economic pressures either. How do you view the drop in interest rate?