Insolvency can be used as the start of a new era with the advent of restructuring. However, depending on your position, it may result in the termination of existing arrangements.
Insolvency arises on the basis of a cash flow or an asset test and either can be used to meet the legal test. We have advised on these tests together with the law surrounding wrongful trading which gives rise to personal liability for directors, the appointment of administrators or liquidators (or in limited circumstances administrative receivers), the restructuring or sale of assets and whether a business must cease trading or continue subject to conditions being met.
We recognise the urgency with which advice often needs to be dispensed in these circumstances and will ensure that a team is assembled quickly with the requisite expertise to handle a given set of circumstances. Insolvency situations are fast moving and often non-formulae and therefore we seek to obtain a grasp of all the relevant circumstances quickly and to seek to provide solutions on a continuing basis to enable our client to take the correct commercial decisions.
Our clients range from Insolvency Practitioners, secured lenders, secured/unsecured creditors and company directors to Registered Social Landlords and companies and individuals in distress.
For corporate insolvency clients we regularly advise on liquidations (compulsory, CVL and MVL); Administration Orders (in and out of court); receiverships (administrative, Law of Property Act and fixed charge); Company Voluntary Arrangements (with and without moratorium. The advice we provide to personal insolvency clients includes bankruptcy; Voluntary Arrangements; private/public examinations; breach of the Insolvency Act provisions; antecedent transactions and asset protection; and general office holder issues.
Within corporate recovery, we advise on forfeiture; possession; debt actions; and the enforcement of guarantees. Our insolvency team is conscious of the fact that Insolvency can represent a more sensitive, unorthodox method of corporate recovery than that represented by straightforward - and often more costly - Court action. They see three key priorities for clients: firstly, identifying the clients' objectives and putting in place a strategy to secure those objectives; secondly, protecting the clients' position, not only in the future but also in the past and present; and thirdly, being accessible by telephone, by e-mail or in person.