Restructuring and Insolvency
As many companies find out running a business is hard, there are many challenges that you can be faced with as a business owner. Financial difficulties due to unexpected events, new competitors, and economic downturns can all contribute to this.
So, restructuring and Insolvency can both be things that unfortunately have to be investigated.
Restructuring and Insolvency is a procedure that lawyers can investigate and act on behalf of their clients when a company is in financial difficulty. The restructuring will usually be the first step in the process, an agreement should try and be agreed with creditors to manage repayments, the next step will be insolvency, this is when a company, unfortunately, cannot pay the debts that they owe.
There are a few things that you need to do if your company is facing restructuring and insolvency is
- Contact all your creditors to see if an informal agreement can be reached.
- Put the company into administration
- Enter a company voluntary arrangement
You can also have the option to liquidate your company, this means the company will close and the assets from it will be sold and the proceeds will be distributed to people that are owed money.
The United Kingdom has an insolvency law that regulates companies that are unable to pay their debts. A bankruptcy law concerns the rules for the person, an insolvency term is generally used for companies that are formed under the companies act 2006. The word Insolvency basically just means being unable to pay any debts that you may owe.
Restructuring and Insolvency is a complex business, and we recommend that you seek legal advice with this matter, a good lawyer or legal team will be able to help you with the whole procedure.
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Categorised as: Restructuring and Insolvency