When a business faces financial difficulties, strategic legal and financial advice at an early stage is invaluable. We will help you understand the options available and provide advice the best possible outcome
Practical advice and support
As a director or owner of a business which is facing financial difficulties immediate steps must be taken to comply with your statutory obligations, and to protect your staff and creditors. We can provide advice, working with our relationships with many insolvency practitioners to provide practical advice and steps to appoint an Administrator, enter a Company Voluntary Arrangement or voluntary Creditors Liquidation.
Our corporate insolvency team can help with the process. We have in-depth experience of insolvency and provide legal services to insolvency practitioners as well as businesses to achieve a solution and try to avoid statutory breaches.
If your company is served with a Statutory Demand you should speak to a lawyer immediately. Upon receipt of a Statutory Demand, if it is disputed then either the creditor should be persuaded to withdraw it or an Injunction must be issued to prevent the presentation of a Winding Up Petition.
If a Statutory Demand is issued against a non-limited entity or individual and is disputed then an Application to Set Aside the Demand can be made to the Court.
There is only 21 days to respond to the Statutory Demand and swift action must be taken.
Winding Up Petition
If your company is served with a Winding-Up Petition urgent steps must be taken to deal with the Petition if it is disputed. The company bank account will be frozen and trading will become very difficult.
The process for the presentation and advertisement of the existence of a Winding Up Petition is temporarily changed during the Covid 19 pandemic and we can advise you on the amended process. If the Petition is not disputed then urgent advice should be taken to prevent statutory breaches such as trading whilst insolvent.
If a Winding-up Order is granted, the company will cease to trade and be placed in compulsory liquidation. The Official Receiver or an Insolvency Practitioner will be appointed as Liquidator to manage the winding up of the company, sell any assets; make a distribution to creditors from any funds available and report to the Secretary of State any breaches in directors’ duties.
Insolvency law is complex and we recommend seeking early legal advice when financial or trading difficulties arise. Various options are available depending on the circumstances and it may be possible to avoid corporate insolvency.
We can assist with restructuring plans, changing the operational, functional and other processes of your business with the intention of making it more profitable.
We can recommend the assistance of Insolvency Practitioners who can assist streamlining costs and procedures. Non-profitable areas may no longer be viable and focus intensified on profitable areas. Done well, restructuring can not only rescue a company from insolvency litigation but also increase resilience for the future.
Customers becoming insolvent
If a customer enters any form of Insolvency a proof of debt will need to be filed with the Liquidator. We can assist in the filing of a proof of debt
If your terms and conditions provide a retention of title clause this can be enforced with the Insolvency Practitioner and those goods which can be identified can be recovered.
Creditors can, subject to the amount owed, influence the appointment of the Insolvency Practitioner and we can advise on this point.