Insolvency Law and Business Restructuring

This is one of our busiest practice areas. ICL Commercial Law provides services to individuals, companies and insolvency practitioners who have the need for expert advice in relation to insolvency.

Individual Insolvency

Personal insolvencies are on the increase in the UK. Insolvency does not always result in bankruptcy. The majority of our individual clients are former directors or business operators who have suffered a business failure and their personal financial situation has worsened as a result. ICL Commercial Law have specialist advisors who are able to assist individuals who are experiencing financial difficulties. A sympathetic ear and sound advice often results in a happy client who feels at though they have had a weight lifted off their mind. We believe we are solution providers that achieve the best results for our clients.

Each client’s circumstances are different consequently the advice and potential solutions vary in each circumstance. There are various options available to clients including:

  • Debt consolidation
  • Individual Voluntary Arrangements
  • Re-financing
  • Debt reduction
  • Bankruptcy
  • Asset pledging
  • Debt management

Corporate Insolvency

In recent years companies have been failing at unprecedented rates. There are two tests of solvency:

1. The “Balance Sheet” test. Do the company’s accounts show the company to be solvent?

2. The ability to pay your creditors when they fall due.

If a company fails on either of the tests the company is insolvent and it is incumbent upon its directors to seek professional advice immediately. If a company trades whilst insolvent the directors may become liable for the company’s debts and find themselves being pursued by the company’s creditors.

There are various options available to companies who are experiencing insolvency problems including:

  • Business restructuring
  • Re-financing
  • Re-negotiation of credit terms
  • Protection against insolvency proceedings
  • Company Voluntary Arrangements – CVA
  • Creditors voluntary liquidation
  • Creditors compulsory liquidation
  • Company administration

It is essential that sound practical advice is sought and ICL Commercial Law will deliver that advice.

Insolvency Practitioners

We are often instructed by Insolvency Practitioners in assist in a variety of ways:

  • Recovery of outstanding book debts
  • Pursuit of former directors to recover preferential payments
  • Drafting of sale/purchase agreements (per-pack administration agreements)
  • Advice on S216 & S217 of the Insolvency Act 1986
  • Court applications to overturn fraudulent disposals
  • Charging Order applications
  • Drafting personal guarantees