My partner and I are in a deadlock after mediation with our accountant who is taking a step back because he cannot get through to her. We are 50-50 partners in a business that is struggling after 16 years of doing very well. We have not had regular salaries in the last 18 months and none this year. We are managing to pay all wages and overheads (the last 2 months has been touch and go) and do not have debt other than 2 thirty day accounts. I have done everything I know how as far as marketing goes but just can not bring the income back to sustain 7 breadwinners. I have been trying to exit gracefully, bending to the point of breaking to help my partner to carry on with the business as she does not want to accept the fact that the company is in serious trouble. The only way forward is to reduce staff and she wont hear of this, not even putting them on 1/2 time so the staff are all sitting around most days all day. She reviked her offer of paying me a token amount for the assets because of the restraint of trade that I cannot sign. She offered to pay off my loan account over 12 months but wont buy out my share of the assets. Just wants me to sign a 5 year 50km restraint of trade and leave. I am not in a financial position to walk away with nothing, neither can I sign the restraint of trade as I have no other income and need the option to work from home until I can generate an income in some other way. She offered a cash amount and monthly payments to repay my loan account but the company does not generate the income to sustain that. I know as I am the biggest creditor I can apply for liquidation but that is costly, drawn out and messy. Is it an option to rather take my 1/2 of the assets, remove myself from the CC and leave? Is this the lesser of 2 evils? Neither of us can afford a costly legal battle. ANY advice would be greatly appreciated.
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