Corporate Insolvency
The Insolvency Act and the Enterprise Act provide the current legal framework for corporate insolvencies. All the procedures must be carried out by a licensed insolvency practitioner.
Procedures include:
Company Voluntary ArrangementsThis is simply an agreement between a business and its creditors for a plan of reorganisation that involves the delayed or reduced payment of debts.
Creditor’s Voluntary LiquidationOften referred to as a ‘voluntary winding-up,’ this procedure is initiated by the directors and shareholders of a business.
Administrative ReceivershipsAn administrative receiver is appointed by a bank or other secured lending institution holding a floating charge debenture.
AdministrationA constructive way of preserving a company’s business or achieving a better return for creditors than a liquidation.
Compulsory LiquidationSometimes referred to as a ‘winding-up by the court’. This procedure normally follows the petition of a creditor or a shareholder
Report on DirectorsWith the exception of company voluntary arrangements, there is an obligation on the part of the insolvency practitioner to report to the relevant Government department on the conduct of anyone who has been a director or shadow director within the preceding two years. This may lead to disqualification proceedings being brought against one or more of the directors. Read more…
For further details in the first instance contact our office to arrange a consultation.