We help business owners move forward. Whether you’re a sole trader or an SME, our team can help.

We measure our success on a client’s ability to exit a debt solution and move forward.

covid recovery

We were contacted by a director of a Company that owned a pub with a small bed and breakfast business near Edinburgh. The Company traded successfully up until the outbreak of the Covid-19 pandemic when it was forced to close its doors.

When some of the restrictions were initially eased, the business was able to recommence trading but was operating on a significantly reduced capacity. A reduction in turnover resulted in delayed payments towards the business’s operating costs. With charges and penalties being applied to an overdrawn overdraft facility, the Company’s debt rose to an unmanageable level.

Realising that the business had gone beyond the point of recovery, she made the decision to appoint one of Libra’s licensed insolvency practitioners as Liquidator. This has prevented debt from continuing to accumulate, and thus preserving the director’s reputation and conduct.

The director has since been able to set up a new Company and renegotiate favourable terms on the lease of the B&B under the new entity. The old Company is now dissolved, and the new Company has begun to thrive now that the easing of the majority of restrictions have been lifted.

covid recovery
  • covid debt
  • licensed insolvency practitioners
  • fresh start
we can help

members’ voluntary liquidation (MVL)

A director/shareholder approached us to discuss putting his highly profitable business through a solvent liquidation process, known as a Members Voluntary Liquidation (MVL) to release the company’s capital (cash) at a reduced tax rate.

Within weeks of the business being placed into liquidation, we were able to distribute 80% of the capital (cash) in the business to the director, followed by a further 20% at a later date.

By placing the company into MVL, the director, as sole shareholder, was able to utilise Entrepreneurs Relief and the capital distribution was taxed at the significantly reduced rate of 10%.

members’ voluntary liquidation (MVL)
  • director/shareholder
  • liquidation
  • entrepreneurs relief
we can help

company rescue

We were appointed to a historically successful construction company that had encountered cash flow difficulties. The company had underquoted on some complex projects that had ultimately been loss making. HMRC petitioned for the winding up of the company, and Libra were approached for advice.

Having reviewed the Company’s financials, we assisted the directors in opening discussions with HMRC, but due to the late stage of our involvement, HMRC were unwilling to accept any of the proposals being put forward. However, the directors took the decision to place the company into administration which allowed the existing profitable contracts to be saved and for trading to continue for a short period to conclude these projects and generate a pool of cash for creditors.

The assets of the business, including the order book, were ultimately purchased by a new company setup by the director, saving the jobs of all 15 staff. The new company continues to trade successfully, having budgeted, and set its pricing strategy appropriately.

company rescue
  • building company
  • arrears & cash flow problems
  • turnover £500,000
we can help

partnership

We were appointed to a husband and wife partnership, trading a 10-bedroom Highland hotel. The hotel had been for sale for 12 months and, due to difficult trading circumstances, turnover had been continually decreasing for several years.

We were appointed in the bankruptcy of a partnership and successfully traded the business while a buyer was found.

This course of action relieved the stress on the partners of the business and within 3 months we were able to find a buyer for the business, which ultimately meant there were no residual claims that fell personally onto the partners.

partnership
  • husband and wife partnership
  • bankruptcy
  • business sale
we can help

Company Liquidation

We were approached by the director of a limited company who rented and traded a public house. Cash-flow issues were causing severe financial difficulties which led to the company neglecting payments to HMRC for Corporation tax and PAYE/NICs.

The sum owed was substantial, which eventually led to HMRC commencing proceedings to raise a winding up petition against the company.

Libra undertook a financial review of the Company and it was noted that it held no tangible assets, so it was agreed that the company would enter liquidation. With the assistance of Libra, the director was able to set up a new Company, negotiate a new lease with the landlord and agree more favourable trade creditor terms. The new company now trades profitably and cash flow is no longer an issue.

Company Liquidation
  • director of limited company
  • cashflow advice
  • winding up order
we can help