Our team of insolvency solicitors understand the sensitivities around running a business that becomes distressed 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.
They will help you to focus on your duties and responsibilities in order that you don’t worsen the position for creditors and so that you can avoid incurring personal liability. Taking early advice from our team can make all the difference in terms of whatever may follow or become outside of your control.
If formal insolvency cannot be avoided, the team have a wealth of experience and insolvency practitioner contacts to ensure that the process runs as smoothly and efficiently as possible, with the least impact on those affected as well as to your reputation and personal liability position.
Our insolvency lawyers recognise the time pressures involved in rescuing a business and the complexities around needing to manage different stakeholders’ interests balanced with constraints on the continued viability of a business.
Whether you are running a business that is to be rescued or purchasing the business and assets of an entity in financial distress (with or without the involvement of an insolvency practitioner), our team has relevant expertise to guide you and deal with all aspects of the process including any transactional work, strategy and negotiations with the other party. Since our team commonly act for insolvency practitioners, they are expert in advising on strategy for negotiating on purchases out of or ahead of a formal insolvency situation.
We do not underestimate the detrimental impact on our clients when an entity or individual that they supply to becomes insolvent. Our team recognises the need to act swiftly and assertively in these situations to protect your position as best as possible.
Our team frequently act for suppliers who are affected by customers entering into administration, liquidation, bankruptcy or propose voluntary arrangements. They apply their wealth of expertise to work with you and provide guidance as to the best course of action in the circumstances. They will advise you as to prospects of recovery and assist you with any cost benefit analysis so that you can make the right decision based on all of the commercial considerations. Since they also act for insolvency practitioners, the team are attuned to how best you can maximise options for recovery in all of the circumstances.
Whatever the circumstances that you are closing your business, whether due to retirement or a change in your situation, our team will be able to assist you with finding a solution to ensure that the process happens within the timeframe needed and as smoothly as possible. Our team can assist with identifying the steps needed to complete the process and what preparatory steps need to be taken. They will also draw from the expertise of other specialists within the firm who can assist with other related matters such as employee redundancies, lease surrenders and in connection with asset disposals.
The process for closure will usually also depend on the financial position in relation to the business. Where solvent, the operating entity may be eligible for being struck-off voluntary or put into a members’ voluntary liquidation. If there are cash constraints (or a negative balance sheet) which means that creditors cannot be paid in full, it may be necessary to consider a formal insolvency procedure. The interests of those creditors have to come before those of the directors or shareholders.
Ultimately, there may several options for closing a business depending on the circumstances. To assess the best route, advice should be sought early on from our team who can guide you to ensure the best possible outcome.
Our team has a wealth of experience in dealing with solvent winding-up and group reorganisations often with a view to returning value to shareholders. As part of their work, they can deal with business transfers and hive-ups and assist with all procedural formalities and strategy planning.