Our Corporate Insolvency Team has vast experience in both the contentious and non-contentious aspects of insolvency, recovery and restructuring, regularly helping clients through difficult and distressing situations.
Herrington Carmichael provides expert advice to licensed insolvency practitioners, private companies, individuals and creditors on a full suite of insolvency, recovery and restructuring arrangements.
Placing a company into administration is not always the end of the road for a company. Administration is a process under which a licensed insolvency professional takes charge of a company's affairs and, where possible, allows the business to trade on by itself or be sold to an appropriate third party to save the underlying business and employees' jobs.
Administration is therefore an extremely useful process that can be undertaken by companies, and our corporate insolvency experts are on hand to firstly assess whether administration is the right option for your company, and also to guide you through the administration process.
Having acted for insolvency practitioners and directors across the UK in administrations, our corporate insolvency team has the wealth of experience to effect a smooth transition through the administration process with minimal stress.
A Company Voluntary Arrangement (CVA) is a useful strategic tool that allows a company in financial distress to reach a compromise with its creditors and continue trading.
Our Corporate Insolvency Team are experts in navigating the intricate legal framework relating to Company Voluntary Arrangements and providing commercially simple solutions to complex issues, tailored to suit the relevant situation.
Having an extensive track record in guiding businesses and creditors through the CVA process, we offer comprehensive legal advice, meticulous planning and effective negotiation to ensure the best possible position is reached for all parties.
Being paid on time is essential to you and your business. Taking control of your debts minimises their impact and having effective ways to improve cash flow secures your business confidence and plans for growth. We work together with our clients on the recovery of "business to business" unsecured debt, guarantee and indemnity claims, or a range of property issues including rent arrears and service charges.
Have you ever felt that your demands for payment are not being taken seriously? Give your credit control a bit more bite!
In many cases a solicitor's letter will be enough and payment will be made. However, if no payment is forthcoming our specialists can take the next step and enter court proceedings.
Invoice Recovery
We work with clients on the recovery of business to business debts, from pre-action to enforcement. If you have outstanding invoices that are overdue, our specialists can help you recover them.
Unpaid Rent
If you are a commercial or residential landlord with tenants in rent arrears, our team can help you recover them.
Management & Service Charges
It is vital for the efficient running of your property management company that charges are paid in full and on time.
Can the Debtor pay?
Assessing whether the debtor is a "won't pay" or a "can't pay" customer is essential to the success of legal proceedings. Our specialists can provide pre-action assessments and debtor profiling reports to guide you on commercial risks.
The UK insolvency framework imposes a number of strict requirements on directors, with high levels of accountability, and so it is important to take advice promptly.
In particular, directors are obliged to comply with their statutory duties, and this will influence a company's trading activities and actions.
Directors are required to minimise the risks for and losses of a company's creditors when there is a risk of insolvency, and there are strict rules as to what actions and omissions directors can take as a result.
Failure by directors to comply with these duties and obligations could result in personal liability being incurred, or even criminal offences being committed.
It is therefore essential that directors obtain expert advice as soon as there is any indication of insolvency arising in relation to their company.
Herrington Carmichael's Corporate Insolvency Team has been advising directors for a number of years as to their responsibilities in insolvency, and has assisted in reducing the scope and liability of directors across the UK.
Our Corporate Insolvency Team has vast experience advising on business acquisitions and sales that are driven by insolvency.
Frequently working alongside industry-leading insolvency practitioners, Herrington Carmichael is able to provide swift and effective advice to complete transactions within tight timeframes, with a tailored service for the requirements of each individual transaction.
Our Corporate Insolvency Team's pragmatic services also extend to assisting with the regulatory considerations that parties to accelerated and distressed M&A need to make, thereby providing a full service to its valued client base.
Our Corporate Insolvency Team is able to assist with every step of the liquidation process.
Whether you are a business owner seeking to wind-up your company, or a creditor pursuing your rights, our experienced insolvency solicitors are equipped to assist you through the intricacies of the liquidation process.
Our dedicated Insolvency Team works diligently to ensure the liquidation process is effected as efficiently as possible, minimising the stress of the insolvency process for all involved and maximising the results for our clients.
Whether you are an office holder, a creditor, a director, debtor, shareholder or a holder of security. Our Insolvency Dispute Lawyers can assist with pragmatic and commercial advice about seeking the recovery of assets in an insolvency situation.
Our services to office holders includes advising on asset recovery and the pursuit of book debts. We can help you obtain information from former directors explaining how the company became insolvent and what happened to the assets.
Our contentious insolvency services include:
Statutory demands are formal legal demands for payment of an undisputed debt, giving the debtor 21 days to pay the due sum.
Failing to comply with the terms of a legitimate statutory demand allows a creditor to petition for the winding-up of the company in question.
Given the power and implications of statutory demands, it is important from a creditor's perspective that they are served properly, and from a company's perspective, that advice is obtained as to how best to respond to a statutory demand.
Herrington Carmichael's Insolvency Team are experts at advising both creditors in the process of serving statutory demands, and also companies responding to statutory demands.
Our Corporate Insolvency Team specialises in providing comprehensive legal advice to creditors seeking to initiate winding-up petitions and to companies defending such petitions.
Herrington Carmichael's bespoke services ensure that we understand the unique aspects of each situation, allowing us to provide strategic and effective solutions, extending from the initial steps of filing the petition to finalising the winding-up process.
With a practical understanding of UK insolvency law, our Corporate Insolvency Team is able to navigate the nuanced landscape of winding-up petitions.
Get valuable insights from our articles.
Find answers to your most pressing questions about our services and processes.
Directors have a vital role to play when a company is in financial distress. They are responsible for ensuring the company’s creditors are protected as best as possible, and as such the legislation in the UK imposes a series of strict obligations on them. Breaching these obligations can cause a director to incur personal liability, and so legal advice should be sought as soon as there is a concern about a company’s financial position.
Unless you and / or your company’s creditors want to wind up your company, winding-up a company is usually a process of last resort. There are a number of alternative procedures and structures that can be adopted to assist a company undergoing financial difficulties. Which approach to take will vary depending upon the situation, and so professional insolvency advice is required to ensure that the appropriate steps are taken.
If you are owed money by a company, there are a number of options available to you, including serving the company with a statutory demand which is a precursor to winding-up action. Such steps will need to be considered carefully however, as winding-up a company as a creditor, especially where there is no security involved, may not be the best way to actually recover your money. Legal advice should therefore be sought as to what the best step is to take in relation to your specific situation.
The short answer – yes! The long answer is slightly more complicated, and depends on the type of sale that is being planned. Directors need to be wary of the duties applicable to them when companies are in financial difficulty, and this will inevitably influence how to structure and the timing of any business sale for companies financially struggling. In any event, directors should obtain the advice of an insolvency expert to determine whether a sale is appropriate and how to proceed.
This is a complex question, as there are a number of legislative provisions in the UK that are designed to prevent directors and shareholders “phoenixing” their companies having rid themselves of creditors. While it is possible, it is important that legal advice is sought to ensure that the legislation is not breached and the relevant individual does not commit an offence and incur personal liability.
Yes! Acquiring a company that is in administration is a slightly different process to acquiring a solvent trading business, as you will need to agree the acquisition with the appointed administrator. Usually administrators will look to sell businesses as quickly as possible if an appropriate buyer is found and so having appropriate legal advice to ensure a smooth transaction is required.
