There are a variety of options available to companies in financial difficulty, from restructuring the business or debt to more formal insolvency procedures. Where a business is being hard pressed by creditors or regulators, directors must take advice on their position and obligations under the law. Failure to do so can lead to personal liability. Moreover, under current case law, taking advice can protect the director if the advice is followed. In cases of insolvency, creditors may also require expert advice to manage their exposure to losses.
Turnaround, recovery and insolvency services can cover a range of situations, from pre-lending and solvency reviews to fraud investigations, advice on directors’ responsibilities, asset tracing and enforcement of personal guarantees. Your advisers should be focused on getting you the best outcome for your specific circumstances and help you manage the various stakeholders.