For Business

Insolvency

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.

At Clarkson Wright & Jakes Solicitors, our insolvency specialists can help companies manage a wide range of insolvency issues, from exploring recovery options to handling winding up proceedings.

Based conveniently in Orpington, the London Borough of Bromley, we provide practical, forward-thinking advice to businesses of all structures and sizes, from SMEs and owner-managed businesses to large regional, national and multi-national corporations. We also advise insolvency practitioners on an array of matters. Our expertise includes:

Corporate recovery advice:

  • Restructuring
  • Pre-pack arrangements
  • Acquisitions/sales of companies in administration
  • Company voluntary arrangements
  • Directors’ disqualifications
  • Other related commercial issues

Insolvency litigation:

  • Statutory demands and applications to set aside statutory demands.
  • Issuing and defending winding up petitions.
  • Issuing and responding to injunctions to prevent the presentation or advertisement of winding up petitions.
  • Claims against directors
  • Claims for preferences and transactions at an undervalue
  • Retention of title clauses
  • Validation orders
  • Insolvent tenants including advising on the options available to minimise losses
  • Advising administrators, receivers or liquidators on all aspects of their appointment
  • General advice to insolvency practitioners

Contact our specialist insolvency solicitors in Orpington

For an initial discussion about how we can assist your business, contact our insolvency solicitors in Orpington, London Borough of Bromley or fill in our online enquiry form.

Our insolvency solicitors’ expertise

Corporate recovery

Identifying 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:

  • Restructuring;
  • Pre-pack arrangements;
  • Acquisitions/ sales of companies in administration;
  • Company voluntary arrangements;
  • Directors’ disqualifications; and
  • Other related commercial issues.

Restructuring

We help businesses, insolvency practitioners and individuals (such as directors or restructuring professionals) restructure businesses with the aim of avoiding formal insolvency.

Combining a wide range of cross-departmental expertise with extensive experience working with other insolvency professionals, we can offer a cohesive and highly tailored approach to restructuring, ensuring that you receive a complete service that fulfils your commercial goals. From strategic rescue planning to advice about individual issues, such as debt recovery and employment law matters, our restructuring solicitors have got you covered.

Pre-pack arrangements

We have substantial experience preparing pre-pack administration documents and facilitating company asset sales in preparation for formal administration.

Our insolvency lawyers can provide general advice about the utility of pre-pack arrangements, including whether the process is right for your business and helping you explore alternative options. Our pre-pack administration advice covers a range of associated matters, including implications for existing creditors, commercial property considerations and financing issues.

Sales and acquisitions of companies in administration

We can advise on sales and purchases of companies in administration and handling the practicalities of the transaction, including conducting legal due diligence, advising on tax or financing considerations, employment considerations such as handling TUPE transfers, advising on warranties, indemnities and handling disclosure.

Company voluntary arrangements (CVAs)

We advise businesses and insolvency practitioners through company voluntary arrangements, helping you negotiate a suitable resolution with creditors while aiming to secure a brighter future for the company.

Directors’ disqualifications

Directors can be disqualified from acting as directors or being involved in the formation or management of any other company for up to 15 years. A director may be disqualified for a multitude of reasons, but all can have a major impact on their professional reputation and personal life. We can bring and defend director disqualification proceedings, providing clear, practical advice and expert negotiation skills.  

Insolvency litigation

In addition, our insolvency litigation team provides advice in respect of all aspects of insolvency litigation. We regularly advise insolvency practitioners, creditors, debtors, individuals and businesses facing financial difficulties and landlords with insolvent tenants.

We can help you with:

  • Statutory demands and applications to set aside statutory demands.
  • Issuing and defending winding up petitions.
  • Issuing and responding to injunctions to prevent the presentation or advertisement of winding up petitions.
  • Claims against directors.
  • Claims for preferences and transactions at an undervalue.
  • Retention of title clauses.
  • Validation orders.
  • Insolvent tenants including advising on the options available to minimise losses.
  • Advising administrators, receivers or liquidators on all aspects of their appointment.
  • General advice to insolvency practitioners.

Statutory demands

We can issue statutory demands on behalf of creditors, giving them the best possible opportunity of maximising recovery from an insolvency business while tactically placing them in the right position to start insolvency action.

We can also assist businesses with applications to set aside statutory demands, as well as exploring other options, such as entering into informal negotiations with the creditor over settlement of the debt.

Winding up petitions

Our insolvency law solicitors can bring and defend winding up petitions on behalf of creditors and businesses.

We can also assist with applications for injunctions to stop the advertisement of a winding up petition in the London Gazette, as is legally required for a company to be wound up.

Claims against directors

We can bring and defend a wide range of claims against directors, including:

  • Claims under the Insolvency Act for wrongful trading or misfeasance
  • Claims for breach of fiduciary duty
  • Directors’ disqualification proceedings
  • Claims under personal guarantees
  • Claims in relation to overdrawn loan accounts or for the recovery of dividends

Claims for preferences and transactions at an undervalue

We can assist where there have been allegations that business assets have been sold at an undervalue, including taking steps to recover assets.

We can also assist with preference claims to put shareholders in a stronger position than they would be during straightforward insolvency proceedings.

Retention of title clauses

We can provide advice about the interpretation and implementation of retention of title clauses which may allow a supplier to an insolvent company to retain the right of ownership to business assets.

Validation orders

Our insolvency lawyers can provide advice about obtaining validation orders which are often essential to allow a company to continue trading upon the issue of a winding up petition. We have extensive experience preparing validation order applications and collating evidence that the company is solvent and can continue to trade without prejudicing the interests of creditors.

We can also provide advice to creditors in relation to validation orders and take steps to protect their position.

Insolvent tenants

We can provide specialist tenancy insolvency advice, working closely with our commercial property experts to advise landlords and tenants about their legal rights and options. Our service can cover options for recovering rent arrears, forfeiture and repossession and dilapidations claims.

Contact our insolvency lawyers in Orpington today

For an initial discussion about how we can assist your business, contact our insolvency solicitors in Orpington, London Borough of Bromley or fill in our online enquiry form.