It is not unusual for businesses to face financial challenges, often caused by external factors over which they have little or no control. Individuals can also face financial difficulties as a result of wider economic challenges. When a company or individual encounters financial challenges, it is often necessary to take advice at an early stage to resolve the immediate and underlying issues causing the financial difficulties. Typically, the extent of the financial distress determines what is the most appropriate support and restructuring or insolvency mechanism. In general, the earlier a company or individual takes advice, the more options are likely to be available.
The failure of a company or the bankruptcy of an individual can affect a number of third parties. Creditors often need to ensure that they protect their position.
A specialist team
It is important to take advice from specialist insolvency professionals. Our team has a wide experience of insolvency procedures and provides cost effective and practical advice. We also work closely with a number of insolvency practitioners and advisers in order to provide a holistic approach to solving the issues which arise when insolvency occurs.
Insolvency practitioners
Advice and assistance
We work with a number of insolvency practitioners from sole practitioners to large firms to help them assist companies to achieve their goals including rescue, reorganising or restructuring the company or to liquidate it with a view to protecting the creditors’ interests. We advise insolvency practitioners both pre and post-appointment. The team deals with all aspects of insolvency law and procedure across a wide range of business sectors.
We have an established reputation for handling claims by insolvency practitioners that arise on their appointments under the provisions of the Insolvency Act 1986. Our work includes acting for officeholders in respect of antecedent transactions and claims against directors of insolvent entities such as misfeasance or other breaches of duty. The team have an excellent working knowledge of the law relating to such claims and can advise on the strategy for pursuing them as well as taking into account funding considerations.
We advise insolvency practitioners on security, priority and inter-creditor arrangements, debt collection and reservation of title claims.
IP regulation
We appreciate that the insolvency profession is highly regulated. We can provide advice in respect of all aspects of the regulatory framework and assist to ensure compliance at all times and in respect of all obligations.
Directors and business owners
When your company is suffering financially or it is at risk from insolvency, you need specialist and supportive legal advice that can help you take the right decisions and ensure that you comply with your duties as a director. Facing company insolvency can be a stressful time and you need to be aware of the duties of a director and the options available to you. We can provide advice to directors to help them through the financial difficulties facing their company and will always seek to work with you as to the potential options for avoiding a formal insolvency outcome wherever feasible in order to maximise opportunities for rescuing the business.
Taking early advice can make all the difference in terms of whatever may follow or become outside of your control. If insolvency cannot be avoided, there are a range of options available and we can help you choose the right option to suit your situation.
Guarantees
In general, the directors of a company are not personally liable for the debts of a limited company. However, if a director or another group company has guaranteed company’s liabilities, it is likely that they will be pursued for that debt under the guarantee in the event that the company is unable to pay it.
Re-use of company name
It is common for directors to try and salvage the goodwill of the existing company by setting up a new company and using a name which is similar to the name of the insolvent company. We can assist a director who wishes to be involved as a director of a successor company to ensure that he complies with all the relevant rules. We can work together with other advisors to ensure the financial success of the successor company.
Director’s disqualification
When a company becomes insolvent or has been struck off the register, the Insolvency Service has powers to investigate the affairs of the company. Often the issues concerning the investigations by the Insolvency Service are linked to issues raised in the company’s insolvency. We can provide directors with support and assistance in dealing with the investigations and provide protective advice.
Restructuring
We provide solvency advice to directors and also advise on restructuring options for businesses. We work alongside the existing advisors and, where appropriate, can recommend turn around specialists including Insolvency Practitioners, who can provide hands on assistance.
We can also negotiate agreement and repayment schedules to enable businesses to meet their obligations to creditors and to avoid becoming insolvent.
Solvent winding-up and reorganisation
We can assist in dealing with solvent winding-up and group reorganisations which are often undertaken with a view to releasing value to shareholders. This often involves dealing with business transfers, hive-ups and assisting with all procedural formalities and strategy planning.
Creditors
Where a customer of yours is in financial difficulty, we can advise you on the practical steps and methods available to you for recovering your debt or for winding up a company when they are unable to pay the debt. We also regularly advise creditors concerning their ongoing trading with a debtor company/individual and on securing their position and debt. If a customer or supplier goes into a formal insolvency process, we can advise you on your rights as a creditor and assist you in claiming in the insolvency. We also advise businesses on the strengths of their existing retention of title clauses and regularly assist businesses with the recovery of their goods.
When a tenant becomes subject to an insolvency process, it is important for landlords to take appropriate action with a view to regaining possession of their property and to recover sums that they are entitled to such as rent deposits and rent for continued occupation of the property. Often the insolvent tenant will grant a licence to occupy to a buyer of their business. Landlords need to understand their rights and remedies and respond appropriately so as not to prejudice their ability to take back possession of the premises at a later date. We can assist landlords in dealing with the competing pressures they are likely to face and to help them negotiate the best outcome for their long term interests.
Sale and purchase of insolvent businesses
The sale and purchase of an insolvent business or its assets is quite different from dealing with a solvent business. We are experienced in negotiating and completing successful transactions for both sellers and buyers, including pre-packs.
Company restoration
Where a company has been dissolved, it can sometimes be necessary to apply to restore the company. We can advise on the grounds for restoration, the restoration process and deal with the application to restore the company.
Individuals
It is unusual for individuals to be able to trade out of their financial situation. However, if you take action early enough it may be possible for you to obtain alternative sources of finance or a consolidation loan which would assist in ensuring that you can continue to control your own affairs. We work closely with a number of Insolvency Practitioners who are able to provide appropriate assistance and to recommend sources of funding. We can also assist you in setting aside judgments or statutory demands if there are appropriate grounds to do so.
If it is not possible to obtain appropriate finance or to avoid formal insolvency, then we can explain the formal insolvency procedures available including bankruptcy and individual voluntary arrangements and their advantages and disadvantages. The aim is to provide you with a solution which fits your circumstances. If you have already become bankrupt or have entered into a voluntary arrangement, we can help guide you through the process.
The major asset in a bankruptcy is often the house. Where this is jointly owned or a third party claims an interest in the property, we have a lot of experience in advising on the ownership of the property and how to ensure that the property is not sold. We can also advise on claims concerning loans which have been taken out to finance any business operated by the person in bankruptcy and which have been charged on the property.
Contact us
Insolvency litigation can be stressful and tough at times, but it doesn’t have to be that way. We will help devise options and strategies to enable you to make informed decisions at every turn. To get in touch please contact Edward Bible on 01494 478622 or email ceb@blasermills.co.uk.
