What is Restructuring?
A legal and financial assessment could reveal a viable business.
Sometimes, the risks of insolvency and liquidation might be avoided early via a corporate restructure. A corporate restructure can involve making changes to the legal and operational set up of your company. For example, this might include changes to ownership, management, leadership, shareholders, operations & policy, employee structures & roles, among other things.
Generally, there are some common restructuring methods which a company might consider, depending on the companies current financial position. The first step, with a forensic accountant or suitable insolvency practitioner, is to obtain a Statement of Going Concern. A Statement of Going Concern provides a top-down assessment of your company’s financial position and allows us as lawyers, and an appropriate insolvency or financial practitioner, to provide you with some advice about the suitability of a restructure versus liquidation or voluntary administration.
Common steps for corporate restructuring can include one or more of:
Debt refinancing or restructuring, which at its simplest, might involve negotiating new payments terms, variations to contracts, variations to interest, equity swaps or temporary stops on enforcement.
Equity restructuring, such as, for example, by issuing more shares and by inviting the public to purchase shares in the company or issuing further shares to existing shareholders; and
Asset disposals where such sales are in the interests of shareholders and creditors.
The aim of a corporate restructure is to find and correct internal inefficiencies in your company’s business model which might be impacting your company’s financial position. Our insolvency and restructuring lawyers provide you with the necessary advice to ensure that any corporate restructure is compliant with the safe harbour rules and director’s duties, and can also help to prepare and review related documentation.
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Liquidation
When a company is placed into liquidation, this is generally occurs because the company is insolvent and because the company has no realistic chance of resolving its financial distress and becomes necessary to avoid additional financial and legal risks. This is usually because the financial situation of the business is dire and there is no prospect of restructuring or salvaging the business. A liquidation should be a last resort, and there are opportunities to avoid such a consequence. Sometimes, your creditors will have the power to liquidate your company.
Insolvent Trading
if your company incurs a new debt at a time where the company is insolvent, or where it reasonable to suspect that your company is insolvent or could become insolvent because, you and other directors could be engaged in insolvent trading. Learn about what this means and how to avoid this.
Voluntary Administration
Sometimes, risks of insolvency and liquidation might be avoided early via a corporate restructure or voluntary administration. A corporate restructure can involve making changes to the legal and operational set up of your company. For example, this might include changes to ownership, management, leadership, shareholders, operations & policy, employee structures & roles, among other things. Voluntary administration involves the appointment of a voluntary administrator with the view to formally restructuring of or the sale of the business. Learn more.
We have a rich understanding of what works, and, more importantly, what doesn’t
Not all advice in bankruptcy and insolvency is equal, and not all strategies are viable.
When your business or future is on the line, it can be hard to know who you can rely on for help. Cost also plays a part. We know that, sometimes, it can be hard to know who to trust. That is why we are open, clear and straight forward with you when it comes to what works, and what doesn’t work.
Our experience is important because we have a deep understanding of your challenges. We know, and are qualified to give you advice on, how bankruptcy and insolvency laws operate, what strategies actually work and how these can effect your planning. We will work with you to produce a plan which is commercially and legally viable. We do not gamble with your business, or your future.