UK Corporate Recovery and Insolvency
Minimising risks. Maximising rewards.
As recognised specialists in their field, our specialist solicitors and partners enjoy an in-depth understanding of the issues facing businesses and individuals in financial distress, and the range of alternatives open to them in this situation. Our experience in managing the, often complex, civil or regulatory aspects of a case is unsurpassed.
Working closely with clients allows us to anticipate potential problems and suggest proactive solutions, including effective and constructive advice prior to a formal insolvency situation. Our focus is on achieving a positive outcome. Our emphasis on a personal service, partner accessibility and a pragmatic approach is central to the successful solutions we are able to negotiate on our clients' behalf.
As part of a full-service team, we are able to provide an integrated approach and seamless solution to the most complex of cases, with clients able to draw on the experience of in-house specialists in areas such as finance and banking, corporate and commercial, commercial property, employment and business crime.
Our team and its members belong to:
- Association of Business Recovery Professionals - R3
- Insolvency Lawyers Association
- Turnaround Management Association
- Law Society - Licensed Insolvency Practitioners
Our areas of Expertise
Administrations
We advise both insolvency practitioners and company directors on the benefits and protection offered to financially distressed companies by the administration procedure. The streamline out of court procedure can provide an extremely fast and cost effective method of preventing creditors from taking hostile action against the company to provide a breathing space to the directors to explore the alternative options available to save the business for the benefit of all its stakeholders .
Receiverships
Although receiverships have been largely abolished this method of enforcement of security over the assets of a company still exists in certain circumstances and its impact on company may differ greatly to the effects brought about by the more constructive regime of administration. We have substantial experience of both insolvency regimes and the likely outcomes for the company and its various stakeholders.
Liquidations
Liquidation signals the death of a company and is not an insolvency regime to rehabilitate a financially distressed company. The first a creditor may know of the financial difficulties of a customer is when they receive a notice to attend a creditors meeting. This right is valuable and advice should be sought in advance of the creditors meeting. The effect of liquidation on the rights of creditors such as landlords, suppliers holding retention of title, persons owing money to the company etc are complex and they need specialist advise to guide them through the procedures.
Company Voluntary Arrangements
A company voluntary arrangement offers (CVA) a procedure which allows a company to reach a compromise with its creditors, which may result in only 25% of the debts having to be repaid, either by the sale of certain assets or from income from future trading. The company is then free of the remaining 75% of its debt, and this is binding on all unsecured creditors. We have substantial experience of providing CVAs for companies as part of a constructive process to save a viable business for the benefit of its directors and shareholders, employees and creditors generally.
Company re-structures and re-financing
There are a range of procedures available to assist a company which has immediate financial problems or can see them on the horizon. We act in conjunction with insolvency practitioners to identify the most appropriate steps to take to protect the company and its business. This could take the form of re financing and corporate re structuring without the need for formal insolvency proceedings. Alternatively we may recommend administration, to obtain a freeze on creditors hostile actions against the company, coupled with a voluntary arrangement or the sale of the business back to its owners or a third party.
Creditors' rights on insolvency
Insolvency causes complex changes to the rights and interests of companies and individuals who are dealing with the company. We can advise on the impact of insolvency on the rights of landlords, tenants, suppliers, charge holders, holders of liens and retention of title, contracting parties, customers' deposits, directors' loans, and employees' rights on unfair dismissal, redundancy and arrears of pay. Creditors are encouraged by law to participate in the formal insolvency process and we can assist creditors to enforce the rights.
Claims against directors
Insolvency practitioners appointed over a company will frequently seek to recover payments made to directors such as preferential payments, repayment of directors loan accounts, over payment of directors remuneration, the recovery of company property or make claims alleging personal liability for company debts, for example claims for wrongful trading or fraudulent trading, or transactions made which were at an undervalue or constituted a voidable preference. We have considerable experience in this area derived from acting for both insolvency practitioners and directors and having seen both sides gives us a genuine advantage when acting for directors.
Directors' Disqualification
As part of his statutory duties an insolvency practitioner is obliged to submit a report to the DTI commenting on the conduct of a director which is used to decide whether to bring proceedings by the Secretary of State seeking the director's disqualification. We have defended many directors in such proceedings, including several high profile individuals and have succeeded in defeating the claim or obtaining a reduced period of disqualification order or even disposed of the proceedings by consent.
Landlords' rights on insolvency
It is crucial for a landlord to understand what his rights are in relation to recovery of arrears of rent, his entitlement to distrain on goods at the premises and his right to forfeit the lease in the event of insolvency. Those rights are very different depending upon the type on insolvency regime, such as administration, receivership, liquidation or voluntary arrangement. Knowing the correct lawful procedure and acting quickly can produce a substantially improved outcome for a well advised landlord.
Bankruptcy
Bankruptcy is a particular strength of our insolvency team. Most of our work is derived from trustees in bankruptcy, and we act for most of the major insolvency accountancy firms. However this experience means that we are uniquely placed to advise on the options open to an individual in financial distress, which may include seeking a voluntary arrangement to avoid bankruptcy, advising on the effects of bankruptcy including taking steps to protect the family's interests in the matrimonial home and defending possession proceedings brought by a trustee in bankruptcy.
Individual Voluntary Arrangements (IVA)
Our team can provide you with independent advice on the options facing you if you have financial problems. If your circumstances are suitable we may recommend an Individual Voluntary Arrangement (IVA), which could mean that you only need pay back 25% of the amount you owe to your creditors and avoid the consequences of bankruptcy. However there are circumstances where bankruptcy will give you a better outcome. We will guide you through the most appropriate process.
Call 0870 164 2372 now to speak with a Corporate Recovery Solicitor or an Insolvency Lawyer.
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