Many businesses will face financial difficulties at some point. When it happens, the right legal advice is key to help you overcome the challenges before you.
At Preston Redman, our team of commercial solicitors are highly skilled at guiding and supporting businesses through rescue and insolvency processes. We understand that as a business owner, you will likely feel a lot of responsibility to yourself, your fellow members and your employees. We are focused on helping businesses explore all the options available to them and finding creative, pragmatic solutions.
We have experience working with a wide range of businesses, from small to medium enterprises and start-ups to large regional and national corporations. We work with businesses from all sectors, with particular experience in the leisure industry, such as hotels, restaurants and clubs.
Our business recovery and insolvency lawyers’ expertise
Business recovery advice
If your company is struggling, we can help you take all possible steps to turn the situation around. We can advise on a wide range of rescue and recovery options, including:
- Informal negotiations with creditors
- Time to Pay Arrangements with HMRC
- Company administration
- Company voluntary arrangements
- Moratoriums and restructuring plans
- Company restructuring and associated issues, such as making employees redundant
Under the new Corporate Insolvency and Governance Act 2020, the law is much more focused on providing businesses with breathing space to find rescue solutions. We will ensure you are able to take full advantage of the new provisions, such as the moratorium provisions which prevent or pause any legal action against your business, to give you the best possible chance of achieving a positive outcome.
For more information on the new law, read our article – The Corporate Insolvency Process has Changed.
Directors’ duties and personal liability
We can help you take legal action against directors within your business or defend legal action if you have been accused of breaching your duties, including:
- The duty to act within the powers set out within the Articles of Association and Shareholder resolutions
- The duty to promote the success of the company
- The duty to exercise independent judgment
- The duty to exercise reasonable care, skill and diligence
- The duty to avoid conflicts of interest
- The duty not to accept third party benefits
- The duty to declare interests in proposed company transactions
We can also provide advice where a creditor is demanding repayment under a directors’ personal guarantee, including advice on the validity and enforceability of the guarantee.
If your cash flow is being impacted by unpaid debts, we can help you take action to recover your money while addressing bad debt and managing risk. We understand that pursuing your customers or clients for unpaid debts is a careful balancing act – preserving business relationships can be vital for the future success of your business, however, letting debts go could ultimately lead to insolvency.
We are skilled negotiators and have a strong track record for helping businesses recover some or all of their outstanding debts efficiently and cost-effectively. We take a communicative approach, engaging debtors in firm discussions with the aim of coming to an agreement out of court. However, we are also fierce litigators; if an out-of-court settlement is not possible, we can help you take a range of legal actions, including:
- County court money judgment proceedings
- Enforcing CCJs in the county court or the High Court
- Investigating ability to pay, including obtaining orders for the debtor to attend court for questioning about their finances
- Enforcing guarantees
- Obtaining and enforcing Charging Orders
- Insolvency proceedings against other businesses
Relief from forfeiture
Your premises will likely be essential to the operation of your business. However, if you fall behind on rent payments, your landlord may take action to forfeit the lease. We can provide advice about whether your landlord has the right to forfeit the lease and advice on seeking relief from forfeiture to prevent your landlord from evicting you and giving you space to implement a business rescue plan.
Winding up proceedings
Where a business cannot restructure or recover, insolvency proceedings may be the only option. We work with businesses, insolvency practitioners and other professionals to handle a wide range of insolvency matters, including:
- Creditors’ Voluntary Liquidations – where the company directors recognise that rescue is not possible and choose to wind the company up
- Compulsory Liquidations – where the creditors of a company take action to wind up to company
Making the decision to step away from a business is difficult but once you recognise that it is likely insolvent, it is vital to cease trading and take steps to minimise losses to the creditors. Directors who continue to trade when the business is insolvent can open themselves up to personal liability and even criminal prosecution if there is evidence of dishonesty.
Why choose Preston Redman for advice about business recovery and insolvency?
At Preston Redman, we take a practical, commercially-minded approach to all business recovery and insolvency matters. We have a highly specialised team who regularly handle complex matters for businesses from a wide range of sectors, with particular expertise in the leisure sector.
Our Litigation Department is led by Tim Flower, an experienced lawyer who has been with the firm for 15 years. Tim can advise on all types of corporate insolvency matter, utilising his years of practical experience to help businesses navigate challenging financial situations efficiently and resourcefully.
Get in touch with our business recovery and insolvency solicitors in Bournemouth, Dorset
For expert advice from a team of dedicated business recovery and insolvency solicitors, get in touch with our corporate insolvency partner, Tim Flower by giving us a call or emailing firstname.lastname@example.org.