Corporate Insolvency
Since the first signs of the economic downturn, interest in the area of insolvency law and the whole area of restructuring and turnarounds has increased significantly. A.F. Smyth and Company and Tom McGrath & Associates have built an excellent reputation in corporate recovery, restructuring and insolvency work by providing tailored legal advice to companies in financial difficulty and to their directors. We concentrate on bringing practical, workable and innovative solutions to each case.
- Is your Company facing Insolvency/ Possible Solutions
- Liquidation
- Members
- Creditors
- Court
- Role of a Liquidator
- Receivership
- Examinership
- Investigation
- Restructures
Is your Company facing Insolvency?
The generally accepted test for the solvency or otherwise of a company is whether a company is able to pay its debts as they fall due. It is not a question of whether its assets exceed its liabilities.
Possible solutions;
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Liquidation
When a company is insolvent is it prudent to initiate the winding up process of the company.
Where a company is being wound up for reasons of insolvency the assets of the company are collected by a Liquidator and are distributed among the creditors in accordance with well established rules.
Directors should note that the court may be called up to investigate the conduct of the company by the Directors and to decide whether any such officer should be fixed with personal liability in respect of any of the company’s debts.
[The law of Restriction & Disqualification of Directors may also be relevant here.]
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Receivership
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Examinership