Lancashire, UK -- (ReleaseWire) -- 01/28/2014 -- Zennet Solutions Limited of Lancashire has just announced that they are launching their new and unique “dry-run” liquidation service to all of their clients. For the past year, the company has tested their new service, and they are pleased to announce that it has resulted in a large drop in post-liquidation problems for Directors.
Directors have always been concerned by what will happen to them once they put their company into liquidation, usually with good reason. For example, they may not know how to liquidate a company properly, and they might not realise that they have fallen foul of any laws until the company is actually in the process of liquidation, which is sometimes a little too late to repair the damage.
By completing a dry-run of the liquidation prior to the company formally closing, potential problems are flagged up early and can be dealt with sensibly.
“The problem with the liquidation process has always been that the Liquidator doesn't take office until after the meeting of creditors, by which stage they are there to look after the interests of the creditors, and not assist the Directors,” said Simon Tully, Client Services Manager of Zennet Solutions, adding that Liquidators have often been reluctant to do too much work before taking office in case someone else is appointed.
“It would be a lot easier for all concerned, and certainly a lot less stressful for Directors, if all the problems could be dealt with prior to the Liquidator taking office.”
Insolvency will always be a stressful time for any Director, Tully noted, and in all the panic and stress, mistakes can be made which lead to problems further down the road.
“When you were at school and called to the headmaster's office, if you told him what you did wrong and how you could put it right, it's a lot better than the headmaster having to tell you what you did wrong,” Tully said.
“Just think of the Liquidator as that headmaster. It's a lot better if you can go to them with a proposal for the mistakes you've made rather than them having to tell you.”
As Tully explained, people are bound to make mistakes during a voluntary liquidation, but if they can learn from them, everyone will be a lot happier, especially if they are going back into business.
“Usually the post-Liquidation problems aren't caused by the Director deliberately breaking the law, it is just a case of an oversight which could easily be cleared up prior to Liquidation,” Tully said.
“This becomes a particular problem when one of the creditors is aggressive, and wants the Liquidator to pursue the Director relentlessly.”
By conducting a test-run of the liquidation process, Tully said, Zennet Solutions Limited have managed to substantially reduce the amount of post-Liquidation problems Directors suffer.
About Zennet Solutions Limited
Zennet Solutions provides independent professional advice and services to directors of insolvent companies, unlike insolvency practitioners (IPs) who are appointed by, and legally responsible to creditors. Zennet Solutions differs from conventional firms of introducers in that they deliver added-value services to shareholders of distressed businesses. For more information, please visit http://www.liquidationservices.co.uk