Insolvency & Corporate Recovery

Insolvency: inability to pay debts as they fall due

Insolvency is a prospect that strikes fear into the heart of any businessman. Seen as a distant threat for many large established businesses it is one that can re-emerge with frightening speed even for the grandest of blue-chips. Insolvency may be, or have been, a day to day prospect for smaller companies battling against adverse market conditions or trying to establish a new product with limited resources.

Many companies fight through this stage to go on to greater things - as a former President of the Board of Trade famously observed from personal experience! Matters are being made easier by the gradual change in British business culture towards the American model where business failure is seen more as a "rite of passage" than a lifelong stigma. Creditors are increasingly prepared to meet struggling companies half-way, and Corporate Recovery is most successful where creditors are approached early and voluntary arrangements are negotiated before the company is forced into receivership.

We are experienced in setting up voluntary arrangements, managing employment issues that arise when downsizing becomes part of the recovery plan, and setting in place Corporate Finance as authorised financial advisors.

Case Study

A country hotel ceased trading when it emerged that the owner of the operating company had acquired and financed it with funds stolen from a public body. Acting on behalf of a third party that wished to acquire the assets and undertaking of the operating company we entered into negotiations with all affected parties. These included the representative of the public body that had frozen the assets, numerous trade creditors owed substantial sums and also a UK clearing bank, which ultimately agreed to fund the purchaser. After seven months of negotiation we achieved a voluntary arrangement that permitted the third party purchaser to acquire the assets on a discounted basis subject to having to take over a portion of the liabilities, the remainder being written off.

We are also accustomed to advising insolvency practitioners in the conduct of insolvency processes.

Contact Aberdeen Office
Tom Rennie	01224 428000
Contact Inverurie Office
Graham Matthews	01467 672800
Contact Huntly Office
Alexander Mitchell	01466 792101
Contact Keith Office
Alexander Mitchell	01542 882537
Contact Alford Office
Linda Purkis	019755 62939