No one sets out in business expecting the company to become insolvent. However, in an increasingly challenging trading environment, many companies will unfortunately experience issues with cash flow, increased costs of doing business, and changing consumer preferences, all of which have the potential to threaten the ongoing viability of the business. If the situation continues, a financially challenging situation can quickly escalate to one of insolvency.
An insolvent company is not necessarily doomed to failure. Insolvency is not always permanent and there are a range of formal rescue and recovery options available which can facilitate a successful turnaround of a financially distressed business. However, if a company is insolvent, e…
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