What is a Voluntary Administration for?
Voluntary Administration was designed to assist companies seeking options to trade their way out of insolvency.
Uncertain Times
The rise in the OCR has generated a lot of economic commentary, including from some in the insolvency industry known to have a passion for self-promotion. Few commentators, however, pointed out the incongruity of the Reserve Bank rising interest rates to dampen down demand, while the Finance Minister is handing out helicopter-money to over two […]
It’s all in the game
Often Insolvency Practitioners encounter a situation in a shareholder(s) appointment of a liquidator, where it becomes apparent that the liquidation has been manufactured after the director(s)/shareholder(s) have structured the affairs of the company in such a way that assets are often taken over at undervalue by another company controlled by the same director(s)/shareholder(s) leaving various […]
Receivership v Liquidation
Receivership and liquidation are both formal insolvency processes for companies in distress. However, they are not the same and have differing purposes. Commonly, people are confused by the differences and this blog will explore what they are. Receivership Receivers are commonly appointed as a manager overall a company’s property. This includes physical assets (motor […]
Insolvency Practitioners’ Nightmare – “Divorce Wars”
Most creditors would, I suspect, be unaware of issues insolvency practitioners sometimes must deal with such as dissenting shareholders. Often the rift between erstwhile colleagues can turn as bitter as any acrimonious divorce. Intransigent positions are taken as the opposing shareholders won’t settle for less than they feel that they are entitled to. It seemingly […]
Transaction Undervalue
Set out in section 297 of the Companies Act 1993 (“the Act”); a transaction undervalue is a statutory power granted to a Liquidator to recover money where a party receives more value than they provided to the Company in liquidation. 1.1 – Criteria for a Transaction Undervalue Liquidators can only pursue transactions undervalue provided certain […]
Advantages of Liquidation
When a business is no longer able to trade due to financial challenges and the shareholders or directors want to close the business, often they will just let the company lapse and be struck off the register. However, voluntarily placing a company into liquidation can also be a cost-effective way to exit a business. Liquidation […]
Ask Not What Your Liquidator Can Do For You
To misquote JFK “Ask not what your liquidator can do for you, but what you can do for your liquidator”. Many company directors/shareholders who place a company in liquidation seemingly have a reluctance or unwillingness to further engage with the liquidator, tasked with winding up the affairs of their failed company, after the initial first […]
Ways to improve work life balance during lockdown
Working from home for the past six weeks has thrown up some specific challenges when it comes to maintaining a healthy work-life balance. Granted, being a mostly desk-bound profession in insolvency/law I have been lucky and able to work from home, not everyone was. But, a high workload, cramped desk space, always present computer/dreaded emails […]
How are recoveries allocated in a Liquidation?
When administering the liquidation of a company, it is common for the Liquidator to make a variety of recoveries including sale of fixed assets, collection of Company accounts receivable, and legal claims pursued by the Liquidator. When allocating the net proceeds of recoveries, the Liquidator must assess the nature of the Recovery and determine whether […]
