A company that cannot pay its debts when they are due is considered to be insolvent.
The most common corporate insolvency procedures are:
There are several warning signs that a company may become insolvent:
- Problems with cash flow
- The need to extend payment terms with creditors
- Refinancing to pay bills
- Solicitors’ letters, demands, summonses, judgements or warrants issued against the company
It is vital that all company shareholders and directors are aware of any insolvency issues, as it is an offence for a business to continue to operate and incur more debts while insolvent.
Company shareholders and directors may also be held personally liable for unpaid debts incurred from the time the business became insolvent.
By seeking early assistance from professionals, it may be possible to salvage the financial situation – and even the business. Our highly experienced team works with clients to achieve a fair result, as simply and quickly as possible.
We pride ourselves on protecting our clients as we guide them through the process of insolvency and safeguard them from any harsh or unfair treatment.
As a third-party advocate, we are able to take the emotional heat out of negotiations and find a solution that is fair and equitable to all stakeholders.