I am working for a company who are making a small profit and expect to grow this significantly over the next few years - good order book etc. However, the company have historically not paid management charges to a related company of around 100,000. The related company originally agreed to defer the repayment until our company had sufficient cash. The related company is now having serious cash flow problems and could possibly go into liquidation.
Can anyone give me any advice as to how a receiver / liquidator would view this loan. If the receiver demands payment instantly, my company would also have to go into receivership, as the company could not afford to make any large repayments for a couple of months or so.(So all employees would be left without a job and most creditors unpaid as most of the funds raised would pay off the overdraft).
Many thanks for you input. It really is worrying us all.
KK