Corporate Insolvency

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Corporate Insolvency

Many businesses experience financial difficulties at some stage and, should a business’s debts become unmanageable, insolvency may be the only option. Where a business becomes insolvent, several parties are likely to be impacted, including business owners, their employees and the business’s creditors.

Any party likely to be affected by an insolvency situation should seek expert legal advice as soon as possible. This can ensure that your interests are protected and that you are able to meet any statutory obligations.

At IBB Law, we provide legal advice on corporate insolvency to a wide range of clients, including:

  • Businesses at risk of insolvency
  • Companies that have become insolvent
  • Companies going into administration
  • Companies facing liquidation
  • Company directors facing misfeasance claims & other claims related to an insolvent company
  • Creditors of insolvent businesses/business at risk of insolvency
  • Insolvency practitioners
  • Purchasers looking to acquire a business or assets from an insolvent party

Our team has handled insolvency situations for clients ranging from start-up companies to large, established businesses, including UK and overseas private and public companies. As such, we can provide seasoned advice for even the most complex and high value insolvency matters.

Whatever your connection to a business facing insolvency, we can provide sensible, pragmatic legal advice and support taking into account your commercial priorities and other areas of concern. The earlier you consult our corporate insolvency solicitors, the more options you are likely to have to deal with your situation.

For expert legal advice on dealing with corporate insolvency, please call 01895 207927or email for immediate assistance.

Our expertise with corporate insolvency

At IBB Law, our dedicated Corporate & Commercial team has a wealth of experience and knowledge covering all aspects of corporate insolvency. We can guide you through this stressful period, identifying outcomes and processes that you may not have considered, whilst enabling you to stay on the right side of your statutory duties.

When dealing with corporate insolvency, we always take the time to understand our clients’ requirements and provide clear and pragmatic advice to match. Leading legal directory Chambers & Partners describes IBB Law Partner Sarah Jackson’s approach as “no-nonsense, pragmatic advice, balancing the costs and the benefits.”

The team can draw on the expertise of others within the wider firm to provide tailored advice in connection with issues relating to areas including corporate finance, property, employment and tax considerations.

We have extensive links with insolvency practitioners, banks and other professionals who support us (and who we support) in providing pragmatic advice for insolvency situations.

How our team can help with corporate insolvency

Making the decision to restructure, put in place a recovery plan, consider insolvency, or dissolve a company is typically very stressful, with a range of economic, financial, organisational and personal factors to consider. Using our many years of experience, our corporate and litigation teams can guide you through this difficult time.

Our corporate specialists will endeavour to develop a legal strategy to manage your risk, to help you save all or part of your business where possible. It is important that company directors act appropriately in insolvency situations to avoid the risk of legal action being taken against them for misfeasance or other types of misconduct.

We can advise on the use of Company Voluntary Arrangements (CVAs) where appropriate, potentially as an alternative to administration. We can also assist where you need to restructure your business, including with options such as demergers.

Where a business cannot be saved, we can assist company stakeholders, creditors and office holders to achieve the best outcome for everyone involved. We also act for directors or interested parties on the receiving end of actions by office holders.

Find out more about how we help businesses at risk of insolvency.

Entering an insolvency process does not necessarily mean the end for a business. The first step will be to place the business into administration. This can be applied for by the company directors or on occasion ordered by a court upon the application of a creditor where a company is unable to pay its debts.

When a business goes into administration, an independent administrator will be appointed to take control of the company with the purpose of achieving the objectives laid down by statute. The first is to rescue the company so that it can continue trading as a going concern.  If this is impossible, then the administrator must aim to achieve a better result for the creditors than liquidation.  If the administrator cannot achieve a better result for the creditors as a whole, then the purpose of the administration is to realise the company’s property to make a distribution to the company’s secured or preferential creditors.  The administrator must be a licensed insolvency practitioner.

While a company is in administration, its creditors cannot take legal action against the business. This provides breathing room for a business rescue plan to be put together by the administrator, in consultation with the company directors, to save the business where possible.

Find out more about how we help businesses in administration.

Where a business cannot be saved, liquidation is likely to be the only option. There are two types of liquidations our insolvency solicitors can assist with:

Compulsory liquidation – Also known as ‘winding up’, this is a process imposed by a court following an application by a company’s creditors. The Official Receiver will be appointed as a liquidator to sell the company’s assets and use the proceeds to pay the business’s creditors. Once this is done, the company will be dissolved.

Creditors’ Voluntary Liquidation (CVL) – This is where the directors of a company decide to liquidate the company themselves. The company directors must appoint a licensed insolvency practitioner to sell the business’s assets, repay its creditors and dissolve the company.

Our insolvency solicitors can advise directors and business owners facing liquidation, making sure they meet their legal obligations and reduce the risk of misfeasance claims or accusations of other types of misconduct.

Find out more about how we help businesses with insolvency proceedings.

As the director of a company, your business becoming insolvent can have a major impact on you personally. It is therefore essential to get expert legal advice on your legal obligations and the steps you can take to mitigate the risk to you and your career.

Our Corporate Restructuring & Insolvency team regularly advise directors of insolvent companies on matters including:

  • Claims against directors
  • Requests for co-operation
  • Director’s disqualification
  • Defending wrongful/fraudulent trading claims
  • Defending antecedent claims and misfeasance claims
  • Defending a statutory demand/bankruptcy petition

Find out more about how we help with insolvency claims against directors.

When a company becomes insolvent, the impact on creditors can be very serious, with the potential to seriously harm profits and, in the most extreme cases, even lead to the failure of the creditor’s business.

Getting the right legal advice can allow you to minimise any risk to your own business, including helping you to submit and assert your financial claims and giving you the best chance of receiving the money your business is owed.

Our Corporate Restructuring & Insolvency team can assist creditors with matters including:

  • Providing proof of debts owed & addressing any challenges
  • Attending creditors’ meetings
  • Defending requests by liquidators or administrators for the return of monies received from the insolvent business
  • Challenging the validity of a CVA
  • Taking action where a company has failed to adhere to the terms of a CVA
  • Validation orders

Find out more about our insolvency advice for creditors.

Our team regularly advises licensed insolvency practitioners taking companies through administration or a liquidation. We can assist with matters such as:

  • Drafting contracts of sale for businesses & their assets
  • Advice on the validity of appointment
  • Advice on different financial charges against the business
  • Debt recovery
  • Actions against directors or connected parties
  • Actions under s127 IA 1986

Find out more about our legal services for insolvency practitioners.

Our Corporate & Commercial team can assist with buying insolvent businesses or their assets, making sure the terms of the purchase are appropriate and that any liability issues and other risks are fully considered.

We can guide you through every step of the purchase, including:

  • Structuring of the deal
  • Due diligence & disclosure
  • Negotiating terms
  • Drafting and transactional documents
  • Advising on TUPE and employment issues
  • Dealing with post completion matters

Find out more about how we can assist with buying a business.

Speak to our corporate insolvency solicitors

For clear, effective advice on dealing with any aspect of corporate insolvency, our expert team are here to help. Please call 01895 207927or email for immediate assistance.