When a business finds itself in financial difficulties, it is not just the business itself that is under threat. Customers, suppliers, lenders, and employees also face the risk of financial loss and may find themselves in need of urgent corporate recovery and insolvency support.
SA Law’s corporate insolvency solicitors guide businesses and individuals through periods of financial distress. We advise on situations stemming from within organisations as well as external catalysts such as the insolvency of a supplier or customer.
Guiding you through corporate recovery and insolvency situations
Insolvency is a time sensitive issue. Taking action sooner, rather than later can prevent company or individual insolvency, retain hard-earned assets, and protect reputations.
We work with stakeholders at every stage of the process. Where alternatives to formal insolvency proceedings, such as restructuring or refinancing, are available, we help put these in place. When formal proceedings are unavoidable, we work with clients to manage the process and achieve the best possible outcome.
In all cases, we help you to achieve your commercial objectives as quickly and risk-free as possible. In doing so, you benefit from SA Law’s close partnerships with local and national insolvency practitioners and other experts within the field.
WHO WE HELP
Experienced in advising the full range of stakeholders affected by an insolvency situation, we advise:
- businesses or individuals in financial difficulty, on corporate restructuring or refinancing to avoid insolvency, as well as the full range of informal and formal insolvency proceedings. Should all attempts at rescue fail, we advise on the orderly winding-up of a business.
- businesses or individuals who are owed money (creditors) on their rights and legal recourses to enable them to recover debts from insolvent organisations or those personally insolvent. We also assist with preparing documents such as statutory demands and petitions to pursue debts.
- company directors on their fiduciary duties, and the risk of personal liability arising from a company or LLP insolvency. This includes advising the directors of insolvent companies in relation to any personal claims made against them by an insolvency practitioner.
- insolvency practitioners on the technical aspects of the insolvency process including their formal appointment, creditor rights and priorities, and applications to the court.
- lenders or funders concerning the commercial and legal aspects of their funding arrangements, including any steps necessary to recover debts from businesses and individuals.
- buyers looking to purchase companies or assets before, during, or after formal insolvency proceedings take place.
Working for such a broad range of stakeholders means we understand the concerns and motivations of all parties, as well as their commercial and legal options. This enables us to anticipate how the situation may develop, so we can prepare our clients for the scenarios they are likely to face, and advise them on their options.
HOW WE HELP
Providing guidance on legal processes and procedures relating to debt, corporate restructuring and insolvency, we take a proactive approach to achieving your commercial objectives.
Insolvency and restructuring affect every aspect of a business from commercial contracts to property and employment. As a large firm of commercial solicitors, you benefit from a vast range of on-hand expertise at every stage of the process.
Setting the business back on the right course will challenge company directors and managers to make some difficult decisions. Business restructuring may include changing employment terms or making redundancies. It is also likely to require stepping-up your debt recovery processes, re-negotiating contract terms, and proposing changes to funding or repayment arrangements to lenders or creditors.
Our team of specialist advisers can assist you with all these activities, providing commercial, legal and procedural advice throughout. We have successfully helped a wide range of businesses to work through their difficulties, from SMEs to large corporations.
Formal insolvency proceedings
When company directors are unable to find a solution to the financial difficulties faced by the business, formal insolvency proceedings offer a second chance to resolve the situation.
An insolvency practitioner will be appointed to take charge of the business and manage it through an insolvency process. The process chosen will depend on the particular circumstances in which the business finds itself, so the practitioner my use administration, receivership, company or individual voluntary arrangements, an informal arrangement or a scheme of arrangement.
Before, during and after the conclusion of the proceedings, we advise insolvency practitioners on the technicalities of all relevant legislation and any interactions with the court.
Where we are acting for the company directors, we advise on the implications of the various insolvency processes, their roles and responsibilities during proceedings, and help them to mitigate any risks of personal liability.
We also advise on the implementation of funding structures, whether lending or borrowing. Where complex deals need to be devised and implemented, our relationships with insolvency practitioners, lenders and banks facilitate swift agreement between stakeholders.
Concluding proceedings and liquidation
Sometimes, despite the best efforts of all involved in a corporate recovery exercise, or formal insolvency proceeding, it is not possible to save the business.
Where this happens, we advise on the orderly winding up of the affairs of the business. This could be through a creditor’s voluntary liquidation, a member’s voluntary liquidation, compulsory liquidation or, in the case of sole traders and partnerships, bankruptcy.
As part of this process we can advise on any commercial or employment related disputes or settlements, as well as the sale of business assets, such as property or intellectual property rights.
IT’S GOOD TO BEAR IN MIND
- Get professional advice as soon as possible. Taking some simple measures now may rectify the problem, or at least give you more time to explore your options.
- Monitor your cashflow carefully and consider preparing a financial forecast – this can help you to spot potential problems before they arise.
- Actively pursue debtors and review any unfavourable payment or contract terms.