When the road ends
Structured Business Close Down / Assisted Liquidation Case Study
The transport company was suffering from an acute cash shortage it could not rebound from. There were multiple external reasons for it. They ranged from customers extending payment or paying poor rates, to highly increased fuel prices and a significantly diminished amount of produce to transport due to a severe drought.
The director suffered from extreme stress and was unable to see a pathway forward. Yet, they were not prepared to appoint a liquidator immediately. Climb Business educated the director about the process. The team developed and implemented a structured close down plan, then introduced the director to the liquidator.
- Developed a plan to wind down the business over a short time frame.
- Helped the director have a clear understanding of their assets and liability position.
- Urgently activated cash recoveries from the debtors ledger.
- Assessed the saleability of some assets relative to debts owed on those assets. Realised some assets.
- Identified personally guaranteed debts.
- Identified potentially preferential payments to creditors.
- A pacified director with a better vision on the situation, recognising and accepting the close down of their business.
- A director educated about their obligations and the process of liquidation.
- Fully completed Statement of Affairs and Report on Company Affairs and Property.
- All employee claims paid prior to liquidation.
- Some assets sold and secured debts paid down.
- Cash in bank account.
- Preferential payments substantiation paperwork filled.
- Reports and documentation ready for the liquidators on appointment day.