Companies may encounter financial challenges at some time or another, whether due to external factors such as a change in the economic climate, increasing competition or internal factors like poor cost control mechanisms leading to cash flow problems.
In effect, all of the above are common struggles faced by many companies on a regular basis. However, unless detected early, issues will arise and relationships’, (whether external and/or internal) may deteriorate when these are not addressed.
Identification of problems is essential and directors must explore the avenues available before being able to engage in a constructive dialogue both internally and with creditors and suppliers to ensure the survival of the business.
Depending on the individual circumstances, there are a number of options and schemes available to companies which may either permit the recovery of the company or, in the event of the company being insolvent, a solution that will protect assets of individuals and those belonging to the business.
Our corporate team advises and acts for businesses, creditors and insolvency practitioners on various aspects of corporate recovery, including:
- Pre-pack arrangements;
- Acquisitions/ sales of companies in administration;
- Company voluntary arrangements;
- Directors’disqualifications; and
- Other related commercial issues.
For a preliminary discussion please contact a member of the insolvency team.