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Insolvency & Reconstruction: Administrations, Liquidations, Turnaround Management, Investigative Accountant's Reviews, Personal Bankruptcies and Part Xs

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By: Vincents Chartered Accountants

ADMINISTRATIONS

Whether you or your business have become insolvent or are being directly affected by someone else's financial trouble, both situations require expert and experienced advice. The insolvency and reconstruction group at Vincents aims to design the most appropriate insolvency solution, in each and every matter.

 

Voluntary Administrations

Voluntary administrations are most commonly triggered when the director of a company realises that the company is insolvent or is likely to become insolvent. To avoid personal liability and reduce the chances of creditors acting to the detriment of the company, a director can take the early initiative to save the company and appoint an independent administrator. Vincents are experienced in the:

  • management of the voluntary administration process
  • thorough investigation of a company's financial circumstances
  • development of strategies that will enable the maximum return to creditors
  • development of strategies to gain support of secured creditors
  • maintenance where possible of existing businesses or business activity
  • development of workable recommendations and advice to directors for the company's future
  • provision of advice on the company's position and potential exposure in relation to insolvent trading

 

Receivership Administrations

A receivership arises when a company is having liquidity problems. This could be indicated by the company's financial statements showing continual losses or the failure to meet loan repayments. Vincents has:

  • extensive experience in running receivership administrations
  • the ability to cover a wide range of scenarios to sell off and close down across varied industries
  • a pragmatic approach to providing hands-on management assistance
  • partners and senior associates involved in the day-to-day conduct of every administration, resulting in concise decision making and cost-effective outcomes for appointors

 

LIQUIDATIONS

When a debtor's situation is without prospect of recovery, the only option available to creditors is to attempt to recover some or all of their money in an orderly realisation of the debtor's assets.

 

Alternatively, a profitable company may have outlived its usefulness and be subject to a Member's Voluntary liquidation. Vincents' senior staff are registered liquidators with extensive experience, and thus are able to administer the various liquidation processes through the following:

  • investigation to disclose any actions or recoveries that may be available to the liquidator
  • investigation of the affairs of the company to determine whether the company or its officers have committed any fraud, negligence, misfeasance, breach of duty or trust or any other offence in relation to the management of the company
  • realisation of assets for benefit of creditors generally
  • pursuit of all areas of potential recovery

 

TURNAROUND MANAGEMENT

For businesses that are struggling, a financial or strategic analysis of the strengths and weaknesses of the business can be used to create a "turnaround" plan without resorting to formal insolvency proceedings. Vincents' recovery specialists are able to:

  • work in conjunction with owners, managers and lenders to identify solutions for viable businesses experiencing financial difficulty
  • plan, implement and manage formal restructurings
  • improve the organisational structure and operational aspects of the business
  • increase or restore profitability by rationalising expenses/cash outflow, sourcing additional capital or realising assets
  • negotiate with creditors and reschedule debt
  • adopt a new product/market focus
  • grow by acquisition
  • establish sound foundations for the business' future

 

INVESTIGATIVE ACCOUNTANT'S REVIEWS

For creditors needing to understand their customer's real financial position and their realistic ability to repay their debts, or for prudent clients considering lending money to a company, the insolvency team at Vincents is able to undertake an independent review of accounts to confirm the financial and other commercial credentials presented by the prospective borrowers.

 

Services include:

  • a review of the borrower's historical and forecast trading performance
  • consideration of the applicant's industry position, their customer / supplier dependence, distribution agreements, strength of management and general SWOT analysis
  • commentary on borrowers' accounts, operations, systems and processes to determine reasonableness of financial assumptions
  • provision of a report clearly evaluating the lender's position and assessment of risk
  • recommendations concerning the prospective lending, including suggestions for security

 

PERSONAL BANKRUPTCIES AND PART XS

When an individual is unable to meet his or her debts they can either enter bankruptcy voluntarily or enter a formal arrangement with their creditors (Part Xs). Vincents is able to assist either individuals or creditors by:

  • discussion of best possible outcomes at pre-appointment conferences
  • thoroughly investigating an individual's affairs to look for the possibility of recovering any debt
  • designing tailored solutions for persons considering bankruptcy or working through Part X arrangements to help people avoid bankruptcy
  • negotiation of terms of arrangement between individuals and creditors
  • the realisation of assets for the benefit of creditors efficient administration of the bankruptcy process including regular reporting and communications with creditors