The ‘twilight zone’ is commonly used to describe a period of trading when a company has, or is predicted to have, insufficient cash to pay its debts as and when they fall due.
This period continues until a business is put back on an even keel, potentially as a result of a restructuring or turnaround process.
During the twilight period, directors must act with great care as failure to do so could result in a claim for wrongful trading or misfeasance, putting personal assets at risk.
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Related linksRestructuring & Insolvency