Corporate Restructuring Service Solutions

Our Restructuring Service Solutions

• Advisory
• Solvent Solutions
• Insolvent Solutions
• Contentious Insolvency

Advisory - Proactive, Adaptive Measures

Sometimes a business comes under pressure from IRBM, a key creditor, perhaps the bank or other lender, due to cash flow issues or a one-off adverse situation, such as suffering a bad debt or losing a key contract. We can help.

When a business is experiencing financial difficulties or uncertainty, the best outcomes are often achieved by taking early action to identify the root causes and possible solutions. We help businesses and their stakeholders to analyse the current situation, understand the options available to them and make proactive changes.

Our Restructuring Services advisory specialists can help with short-term cash flow pressure, engagement with secured and unsecured creditors, refinancing considerations, business improvement solutions and addressing underlying business-critical issues. We have the skills and experience to make the advisory process engaging, effective and value-added with the primary objective to place the business back on a recovery path and secure its longer-term future.

• Independent Business Reviews (IBRs) - reviewing a business’s financial, operational and strategic performance and forecasts
• Options Reviews - assessing the merits of a range of actions available to management
• Pre-lending Reviews - identifying the extent of support required and the level of debt that a business is likely to be able to service
• Solvency Reviews - determining the solvency position of a business and advising management and directors of their responsibilities. Setting out the options available to stakeholders and the likely outcomes of a structured exit
• Contingency planning - helping to evaluate and manage short-term working capital ahead of alternative strategies, such as an Accelerated Merger & Acquisition process or an insolvency event

Where relevant, we help by drawing upon experience across our firm, including, our Merger & Acquisition, Valuations and Business Consulting teams.

Solvent Solutions

Where a solvent company may have reached the end of its lifecycle or where its shareholders are seeking to receive assets and profits in a tax-efficient manner, a solvent exit strategy is required.

Our dedicated Restructuring Services specialists will work with you to carefully explain the process, highlight any potential obstacles to be eliminated and provide tailored advice regarding your exact circumstances to execute the required strategy and achieve a successful outcome.

MEMBERS’ VOLUNTARY LIQUIDATION (MVL)

Shareholders can extract their wealth from a solvent company, often in a tax-efficient way, using a solvent liquidation process.

We work with directors and shareholders of a company to place it into solvent liquidation and liaise closely with the company’s accountants and tax advisers to ensure any available tax reliefs are claimed.   As liquidators, we realise the assets of the company and distribute these to shareholders, after settling any outstanding debts owed by the company.

CORPORATE SIMPLIFICATION

Acquisitive companies often find that over time their structures become unduly complicated, with numerous legacy dormant subsidiaries within a group.  This results in increasing compliance and administrative costs, management time and greater risks.

We can help in the formal closure of solvent companies, through managed wind-downs, solvent liquidations and strike-offs.  We work with you to identify target companies within the group that are considered surplus to requirements, checking that they are suitable for removal, identifying any barriers to removal and providing recommendations on next steps. We can strike-off (dissolve) or place into solvent liquidation these surplus companies, leaving a leaner, more efficient corporate structure.

Insolvent Solutions

In certain circumstances, an insolvency process may be unavoidable or is considered the most appropriate strategy to deliver the best outcome for creditors and other stakeholders.

We can support you to prepare for a process, evaluate strategies to restructure, preserve the business and maximise asset realisations.

COMPANY VOLUNTARY ARRANGEMENT (CVA)

To support a company through financial pressures, the directors can propose a credible repayment plan to the company’s creditors, which provides the company protection from creditor action and allows the directors to retain control and continue trading.  This avoids the closure of the company and can result in a better outcome for all stakeholders.

We work with you to prepare forecasts for the restructured business going forward.  We will negotiate with key stakeholders to determine the best solution that balances the interests of the company and its creditors and will support you through the duration of the CVA.  A trading CVA is not to be underestimated which requires dedication and long-term commitment and our team is here to support you throughout the process.

If the direction of travel gets turbulent, our Restructuring and Insolvency Services advisory specialists can help suggest solutions to keep the CVA on track.

JUDICIAL MANAGEMENT (JM)

Where a company is insolvent or likely to become insolvent, Judicial Management can be a powerful tool to rescue a business and preserve employment.  Judicial Management is typically used where cash flow pressures are insurmountable but there is an underlying viable business to preserve. It provides a breathing space to allow a Judicial Management to formulate the optimal strategy to achieve the best outcome for the company’s creditors.

We can help by rescuing the business, selling its assets or identify alternatives that can lead to a better outcome for creditors and other stakeholders.  This includes considering either a conventional Judicial Management or a “Pre-Pack” Judicial Management.

CREDITORS’ VOLUNTARY LIQUIDATION (CVL) & COMPULSORY LIQUIDATION

Where a company is insolvent and there is no other option than to cease trading and be wound-up by its creditors (either voluntarily via its directors and shareholders or compulsory via court order), we have extensive experience in maximising realisations of a wide range of assets to secure the best outcome.  As liquidators, we can help by closing the business and bringing finality to the situation. 

As with other insolvency appointments, we have a duty to investigate and report on the conduct of directors prior to insolvency and, where appropriate, pursue restitution action for the benefit of the company’s creditors.

FIXED CHARGE AND LPA RECEIVERSHIP

Holders of mortgages or fixed charges are able to appoint a Fixed Charge or Receiver.

Receiverships are generally simpler and subject to fewer statutory reporting requirements than other formal insolvency procedures.  As the receivership is over a specific asset or assets, it can operate alongside the mortgagee’s normal business dealings. Receiverships are often used as a tool by mortgagors to realise a property, collect rental income and/or negotiate with the mortgagee regarding repayment.

We advise and are appointed by a range of lenders and charge holders to manage the orderly sale of commercial properties, residential homes, land for development or other non-property assets.   We work closely with local agents, property managers and development specialists to maximise recoveries to lenders.

Contentious Insolvency

Our specialist Contentious Insolvency team has considerable experience in identifying and pursuing claims under the Companies Act 2016 and other legislation. 

We have enhanced recoveries for the benefit of creditors by way of commercial settlements and when necessary, litigation.  On many occasions, the recoveries achieved through our investigations have been the only source of funds for the insolvent estate.

Our team regularly pursue claims arising from transactions at undervalue, preferences, breach of duty / misfeasance, unlawful dividends, wrongful / fraudulent trading, as well as seeking the repayment of outstanding loans from directors and third parties.  

Investigating fraud and tracing assets, often on an international scale, is made more effective by our global network of offices and in-house forensic experts.

We also provide advice and guidance for our clients as to how they can maximise recoveries, or avoid further losses.  This includes IRBM & Customs, local authorities, banks and alternative lenders.