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nexus solicitors advises on all aspects of corporate insolvencies.
Our clients include insolvency practitioners, turn-around professionals, banks, companies, LLPs and partnerships of all sizes and their directors, members and partners. We also advise private individuals with interests in insolvent businesses.
We are regularly involved in insolvencies covering numerous business sectors, from retail, leisure and property development, to manufacturing, construction and professional firms.
We have market-leading expertise in insolvencies of solicitors’ practices, and the associated specialist regulatory issues, including reporting to the Solicitors Regulation Authority and clients of the failing practice and working with a view to avoiding an intervention by the SRA.
The insolvency process is a step into the unknown for most businesses and having not only the right legal advice, but also the right team of advisers from other professional areas, is vital.
As part of our advice to businesses in distress, we recommend suitable insolvency practitioners or other advisers such as accountants, financial advisers and bankers as may be appropriate.
Many of our clients contact us at the start of their problems and allow us to handle the process from there. We always work with a view to avoiding insolvency wherever possible, but where that cannot be avoided we will assemble to right team of advisers to make sure that the interests of the creditors are protected, along with the staff and the directors or partners.
We often advise on ways of protecting assets before a business enters a formal insolvency process, to ensure that the right steps are taken so that the business can carry on, should the worst happen. This often leads to a rescuing of the business.
We are experienced in dealing with group companies and stand alone businesses.
We have considerable experience of administrations, including urgent rescue cases, with appointments of administrators made out of court by directors or companies and creditors including the holders of qualifying floating charges, banks and asset based lenders, through to private debenture holders.
We often act in ‘pre-pack’ sales of businesses out of administration, dealing with everything from the transfer of assets and staff to compliance with the rules governing secret ‘pre-pack’ business sales and marketing of insolvent businesses for sale. We are often asked to advise in setting up and acting for the purchasing company.
We also act in the appointment of administrators by application to the High Court, especially in cases where there are competing interests over assets. We have considerable experience in all aspects of insolvency before the courts.
We act in liquidations of all sizes and types of business.
Many liquidations are initiated by creditors looking to recover unpaid debts. We can assist a creditor in doing so by issuing a winding up petition and taking it to court, to put the debtor into liquidation. We can also advise the creditor on converting from unsecured to secured creditor status such as by obtaining charging orders from the courts over assets of the debtor business and in the case of landlords, distraining for rent.
Other liquidations are initiated by the directors of the insolvent company such as in a creditors voluntary liquidation. Our advice includes selecting an insolvency practitioner to be appointed as liquidator who will wind up the business for the good of the creditors.
Like many other areas of insolvency law it is vital for a business to get the right legal advice before and during the liquidation process. It is vital that the directors or partners understand their position especially where they intend taking the business name into a new business post liquidation (or administration), as failing to take the proper steps can lead to personal liability and the committing of criminal offences.
We also advise liquidators or directors and shareholders, bondholders and other stakeholders in solvent or members’ voluntary liquidations including those undertaken as part of a taxed based restructuring, for example under section 110 of the Insolvency Act 1986.
We are often brought in by insolvency practitioners, directors, lenders and other stakeholders to advise on bank securities, trusts and their survival of insolvencies and other equitable interest claims as well as general asset recoveries including preference payments, transactions at undervalue and transactions defrauding creditors.
We act for directors and partners in respect of their powers, duties and conduct, especially in businesses in distress and those directors facing disqualification or being pursued as guarantors.
We are often asked to advise shareholders and other stakeholders including secured creditors in taking part in insolvencies and re-structuring, what to expect and what not to expect, and how to manage themselves and their affairs in the event that they lose out in an insolvency. Quite often, the knock on effect of insolvency travels far and wide and those who are affected by it must make sure they are prepared.