Insolvency occurs when a person or company is unable to pay their debts when they fall due. Corporate restructuring aims to make major changes to the general structure, operations or outstanding debt of a business to solve this problem. Effective restructuring requires a deep understanding of Australian corporate law as insolvency is enshrined in the Corporations Act. Amongst many other things, the law creates obligations for a company director to not incur debts if the company cannot afford to pay them, and not trade while insolvent.
Businesses can face financial hardships or challenges on a number of fronts including the collapse of a major customer, disputes and litigation, poor planning and poor management. However, swift action can minimise any potential fallout. It is important to receive proper legal advice and to have the right contracts in place to ensure protection for all parties with respect to insolvency and restructuring. We can assist in dealing with creditors, debtors, financial institutions, trustees, investors, buyers, sellers, developers and institutional lenders in all aspects of insolvency and bankruptcy.
We can advise on all aspects of insolvency, corporate restructuring and debt recovery including:
- Corporate insolvency, liquidation, receivership, voluntary administration and bankruptcy
- Statutory demands
- Valuation and solvency proceedings, sale and purchase of distressed assets, debts and portfolios
- Debt and equity restructure arrangements, security reviews and enforcement strategies
- Lender liability
- Representation in bankruptcy alternatives, reorganisations, liquidations, insolvency planning and loan restructures
- Post-liquidation and bankruptcy actions in relation to creditors meetings and proof of debt