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Protection in Uncertain Times, 20th January 2012

Every week more Scottish businesses enter insolvency in one form or another. Trading in the present economic climate has never been more challenging and the outlook is far from encouraging.

Companies who rely on credit terms from suppliers to conclude projects before being paid are at most risk.

Did you know that a creditor can wind up your company and have the court appoint a liquidator without your having had the chance to state your position? Were you aware that a creditor could prevent you continuing to trade by obtaining an "interdict" again without you having a say? These are orders which come completely by surprise and can be catastrophic to your business - not to mention difficult and costly to reverse. In all business, cash flow is key and you may be on the brink of recovery by way of payment of large sums due to you, when disaster strikes.

Some good news though is that you can protect your business from such dangers, and to do so is straightforward. By lodging what is known as a "caveat" in the appropriate courts, the court will be prevented from making any interim orders for liquidation or interdict without your solicitor being advised and a hearing taking place. This can often be the difference between your business surviving - or not. With the protection of a caveat your focus can remain on running your business.

Caveats are inexpensive and require to be renewed annually. Caveats are the first step in protecting your business from creditors.

Macdonald Henderson provides a comprehensive advisory and implementation service in respect of corporate recovery, asset ring-fencing and restructure. We assist our clients through these difficult times on a daily basis.

If you would like to lodge a caveat or discuss how best to protect your business please contact Alan McKee and/or David Beveridge below:



Last updated: 3.31pm, Monday 30th April 2012

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