Insolvency

In the current economic climate not every business is thriving.

We are here to help both businesses in distress and creditors facing the prospect of debts being unpaid.

How Napthens can help

We will work with distressed businesses to restructure debt to avoid insolvency, but if all options have been exhausted, we will guide you through the administration, liquidation, voluntary arrangement, or receivership process.

We provide tailored advice to directors of distressed businesses, assisting them in avoiding personal liability which can arise in such circumstances.

We are able to draw on non-contentious specialisms in our commercial property and corporate teams to restructure borrowing and/or contractual arrangements to enable businesses to continue to trade. Highlights of our work in this area include:

• Obtaining validation orders to allow distressed businesses to pay creditors and trade out of potential insolvency situations
• Representing companies and directors in relation to claim bough by group enquiries in administration and liquidation to negotiate settlement
• Restructuring the funding of a property development comprising multiple units over numerous titles to allow creditors to be paid

In addition to the appointment of liquidators, administrators and trustees in bankruptcy which are commonplace.

The support we offer to creditors includes:

• Advising on claims to defraud creditors, allowing proceedings to be taken against third parties benefiting from antecedent transactions to recover assets which directors of insolvent businesses have sought to put beyond the reach of creditors
• Bringing claims for breach of warranty of authority in situations in which the owner and/or director of a dormant company has used that company to enter into transaction knowing that there is a risk that the creditors will not be paid, and the vehicle used for the transaction is dormant
• Claims against directors of insolvent businesses personally for fraudulent misrepresentation
• Retention of title claims to recover goods supplied but not paid for