Restructuring and insolvency trade body R3 has launched a free guide for company directors that explains how to spot signs of financial distress, the options open to them for resolving it, and where to find sources of regulated advice.
The document, Get Back to Business: A guide to dealing with corporate financial distress, is available to download from the R3 website by clicking on the Back to Business link.
The guide:
- provides a one-stop guide to the main options that are available to resolve corporate financial distress;
- explains how the insolvency and restructuring framework and profession can help to rescue viable businesses, save jobs, and repay creditors;
- helps to point directors to qualified and regulated sources of this advice;
- sets out the duties and responsibilities of company directors and the importance of meeting them.
Eleanor Temple, chair of insolvency and restructuring trade body R3 in Yorkshire and a barrister at Kings Chambers in Leeds, says: “At a time when many companies are still reeling from the economic impact of the pandemic, it’s important that directors know about the range of options available to secure the future of their firms.
“That’s why we’ve developed this guide – to give directors a single resource that sets out the full range of options for addressing financial issues, where to find regulated financial advice, as well as outlining the importance of meeting their responsibilities as company directors.”
Research published by R3 in May of this year showed the insolvency and restructuring profession rescued a total of 7,200 UK businesses and saved around 297,000 jobs in 2019, while nearly four out of ten (39%) businesses advised by R3 members remained open after their insolvency procedure concluded.
Colin Haig says: “Rescue is always the profession’s priority wherever this is possible, and this research showed how the profession helped businesses survive in a far less turbulent economic climate than this one.
“But the prospects for business rescue are always better the earlier issues are identified – we urge anyone who is concerned that their business could be struggling to download our guide, and to seek advice as soon as possible.
“It can be difficult to talk about your business worries, but the sooner you have the conversation, the sooner you can begin to explore the options for improving your situation – and for turning it around.”
To download R3’s guide, visit the R3 website and click on the Back to Business link.
