There can be many twists and turns over the life of a business, but one of the more serious (and usually final) turns is when it declares insolvency.
A recent spate of high profile collapses, most notably music retailer HMV, cake chain Patisserie Valerie, and department store House of Fraser, have all brought various insolvency methods to the fore.
While the word insolvent usually conjures up images of a business going bust and closing down, the reality is less clear.
Insolvency essentially means a company either cannot pay its bills when they are due, or its liabilities outnumber assets on its balance sheet.
A firm can still keep trading while in insolvency, although it often requires either agreement…
Read the full article at: https://www.proactiveinvestors.co.uk/companies/news/214896/when-business-goes-bad-what-are-a-companys-options-when-it-becomes-insolvent-214896.html