Maximising the options for your business and its chances of recovery when facing financial difficulty At a glance
- First-class legal advice and support if your business is facing insolvency
Financial pressures have a wide-reaching impact and can be stressful and worrying for all concerned. If your business is experiencing financial difficulties, it is important that you ask for support as early as possible in order to maximise the options for your business and its chances of recovery.
Seeking the right advice from insolvency solicitors who are specialists in their field and who understand the commercial reality of the situation you are in is important in ensuring the best outcome for you.
Our experienced, approachable team can advise and assist you with:
- Understanding the financial position and prospects of the business, and the options available, which may include negotiating with creditors, liquidation, administration, or a voluntary arrangement
- All insolvency procedures including: company voluntary arrangement (CVA), administration, administrative receivership, creditors’ voluntary liquidation (CVL) and compulsory liquidation (WUC)
- Restructuring the business
- Responding to a statutory demand
- Defending a winding up petition
- Payments after a winding up petition has been presented as well as validation order applications so that the business can continue trading and pay key suppliers and employees
- Alleged breaches of a company voluntary arrangement
- Your duties as a director, and practical steps you should be taking if the business is facing financial difficulties, if it is subject to a demand or winding up petition, or if it has been placed into an insolvency process.
Other factors to be aware of
Aside from the financial aspect of insolvency, there are a number of other factors you need to be aware of that affect you directly, including:
- Defending misconduct claims by insolvency practitioners, such as misfeasance, wrongful trading or fraudulent trading
- Defending challenges regarding pre-insolvency transactions, for example: unlawful dividend payments; repayment of overdrawn director’s loan accounts; preferential payments; transactions at an undervalue; and void dispositions of the company property, including payments and asset transfers
- Proceedings to disqualify you from acting as a director
- Buying the business or assets out of insolvency.
Insolvency does not necessarily mean the end of your business. It is possible to purchase the assets in order to continue trading with a different entity.
We also provide assistance with:
- Pre-pack purchases
- Setting up new entities
- Permission to re-use company names
- Retention of title issues.
Our priority is to furnish you with the information you need to comply with your duties, and to understand the implications for you personally in the event that the company you manage is in financial difficulties.
If you are facing a claim, we will provide clear advice and practical solutions and fight on your behalf to secure the most cost-effective resolution. If you want to continue the business as a new entity, we can turn around a business sale quickly using jargon-free short form agreements.