Business Recovery & Insolvency Legal Services

It is generally better to seek advice as soon as there are concerns about the financial position of the business, rather than waiting until a formal insolvency process becomes unavoidable. Warning signs may include persistent cash-flow difficulties, increasing creditor pressure, an inability to pay debts when they fall due or concerns about the long-term viability of the business.

Early advice can help business owners and directors understand the options available, assess whether the business can be restructured or rescued and take appropriate steps to protect the interests of those involved.

No. Depending on the circumstances, there may be options that allow a business to restructure its finances and continue trading. These can include negotiating informally with creditors, refinancing, restructuring debts, a Company Voluntary Arrangement or administration.

The right approach will depend on the financial position of the business and whether there is a realistic route back to sustainable trading. Obtaining advice early can provide more time to explore the available recovery options before the position deteriorates further.

When a company becomes insolvent, directors need to give particular consideration to the interests of the company’s creditors. This includes taking care to protect company assets, avoiding actions that worsen the position of creditors and ensuring that individual creditors are not improperly prioritised.

Directors facing financial difficulties should therefore seek advice promptly so that they understand their responsibilities and can make informed decisions about whether and how the company should continue trading.

Our Business Recovery & Insolvency team advises business owners and directors experiencing financial difficulties, as well as insolvency practitioners and office holders dealing with formal insolvency appointments.

We provide support across a wide range of matters, from business recovery, restructuring and insolvency options through to asset realisation, investigations, creditor issues and contentious matters arising from an insolvency process.

Providing an up-to-date picture of the business’s financial position will help your advisers understand the urgency of the situation and the options that may be available. Useful information can include recent accounts and management figures, cash-flow forecasts, details of assets and liabilities, a list of creditors and any demands or legal proceedings already received.

You should also provide details of any secured lending, personal guarantees or significant contracts that could affect the position. Do not delay seeking advice simply because all of this information is not yet available, particularly where the business is facing immediate creditor action.