Insolvency proceedings are collective proceedings designed to protect the respective interests of the creditors and debtors as a whole and provide a fair distribution of limited assets to the creditors.
Inherently, these proceedings serve to protect the security taken by those creditors who have been able to do so. Most businesses have, in recent years, expanded the extent of security provided over their assets. Recoveries by unsecured creditors are often very restricted and maximising recoveries by managing credit, taking security or simply understanding the procedures and using them to your advantage can provide key protection to a business against irrecoverable bad debt.
Our Insolvency team, in close conjunction with our Debt Recovery team, provides expert advice to creditors, debtors and insolvency practitioners. We also advise on credit terms and credit risk, mitigating against the risk of debtor insolvency, incorporating enforceable terms for retention of title or security or guarantee terms and on credit and cash flow management.
Some of the above services can be provided under fixed fees, periodic retainers or are provided free of charge as part of other services to existing clients.
We can advise on any of the following issues:
- The strategic use of court proceedings, statutory demands and Creditors’ Petitions (including Bankruptcy Petitions, Petitions to wind up companies, LLPs or partnerships, and Creditors Petitions to appoint Administrators over companies,LLPs or partnerships).
- Representation of creditors at creditors meetings, including those convened to agree voluntary arrangements (for individuals, companies, LLPs and partnerships); appoint voluntary liquidators; appoint trustees in bankruptcy; and to considerand approve the proposals of an Administrator, including advice on proposed variations, voting rights and challenges to any decisions reached at the creditors committee.
- Completion of proofs of debt and proxies, making claims for formal and informal security, recovery of goods under retention of title clauses, hire/lease agreements and conditional sale agreements.
- Enforcement of security against insolvent debtors.
- Communications between insolvency practitioners and creditors.
- Competing claims between creditors and debtors, the specific rules of set off within the different insolvency procedures and claims by insolvency practitioners against creditors to set aside payment or transactions.
- Settlement of disputes with insolvent debtors or insolvency practitioners.
- The rights, duties and responsibilities of insolvency practitioners.
- Being appointed to creditors committees.
- Pursuing or supporting potential claims by insolvency practitioners (or creditors directly) against directors and third parties.
