Nxt Manchester — Jan./Feb. 2009 - (Page 23)

Promotional Feature Economy: Business Rescue Experts have for some time now been predicting how hordes of retailers, pubs, bars and hotels will succumb to financial pressures in January but some are concerned that without any assets left in many of these businesses, it will be up to Government appointed receivers to clean up the mess. Gary Lee, partner at the UK’s leading business rescue, recovery and restructuring specialist Begbies Traynor in Manchester said, “Many companies have until now continued trading because they could release cash from their properties and other assets but now their refinancing options have run out. Unfortunately we are now seeing a growing number of corporate insolvencies where there are no assets whatsoever left in the business—it has simply been leveraged and refinanced to its limits. Official receivers are getting involved more often because private practice liquidators can’t identify any assets that can be recovered even to pay their own fees let alone leaving anything for the creditors. He went on to say “There is no doubt that we will see more compulsory liquidations where the creditors owed the money will wind up the company through the courts. Of course, where the director volunteers to pay the Liquidation fees personally, someone will take on the job and this does still happen because they want the company to come to a sensible conclusion for the sake of everyone involved.” For those who continue to trade, Gary sends a stark warning: “If company directors decide to continue trading although the business is technically insolvent they could be held personally liable. If found guilty of wrongful or fraudulent trading then they can’t hide behind limited liability status and ultimately the liquidator could come after their house and other personal assets. Many have also given personal guarantees to the banks and they will almost certainly have that called upon very soon. If people take advice early there are always more options available—often even solvent ones—such as selling or restructuring the business but that time is running out and fast.” BUSINESS SERVICES continued from page 7 tion regulations may cause employers more difficulties miss an employee it should in future. A recent amendalways follow its dismissal ment to these regulations has potentially exposed procedures. employers to claims for An employer should ensure direct discrimination if that it treats other “extrem- they take action against an employee due to their ist” political groups coninvolvement with the BNP. sistently otherwise there may be a claim for race Only a limited defence is discrimination. available in such circumThe religious discriminastances. Whilst the gov- ernment did not intend to widen the ambit of these regulations in such a way it remains to be seen how the matter is interpreted by the Courts. Vicky Bennett is an Associate at Weightmans T: 0161 233 7366 E: vicky.bennett@ weightmans.com

Table of Contents Feed for the Digital Edition of Nxt Manchester — Jan./Feb. 2009

Cover Contents Editor's Notes Nxt Challenge MediaCityUK 2009 - The Vision The Lowry Hotel Nxtbook Stateside Nxtbook Europe Colin's Spinning Jenny Puts Manchester on the New Media Map Personal Liability Shock in Store for Insolvent Directors Key Tips to Generate Web Site Revenue Economy: Business Rescue Taxman Drives a Hard Bargain on Travel Expenses Server-Hosting Sector Goes Green Don't Let the Credit Crunch Affect Your Health The Changing Face of Manchester Salford University Appoints MediaCity Director Century Turns Real Nxt News Events

Nxt Manchester — Jan./Feb. 2009

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