Financial Distress

From H J Heinz to Walt Disney, even the most high profile or best run businesses can face financial difficulties from time to time.

Their subsequent successes are proof that insolvency need not be the end of the world, but however you are affected in your business life – as a business owner, company director, creditor or potential investor – you need specialist advice to ensure your best interests are protected now and in the future.

This is at the heart of what we do in our business recovery and reconstruction team. A financially distressed company presents highly demanding, technical and commercial issues for the numerous stakeholders involved. We provide pragmatic, solution-driven advice and assistance to guide you through this challenging environment. We have experience in a huge variety of industry sectors in the UK and overseas and the collegiate environment of our firm also means that we are able to adopt a multi-disciplinary approach that draws on a wide range of expertise, including corporate real estate, dispute resolution, employment and tax.

As a business owner, if your business is facing a financial challenge, we work closely with you to devise a plan of reconstruction to ensure the rescue of the business operations, the saving of jobs and the preservation of value and reputation for yourself and other stakeholders.

As an investor, obtaining advice on the structuring of your investment is key to ensuring that your investments are secured in the event of enterprise failure. Should insolvency arise and losses follow, we can advise on your position and assist in recovery actions through the insolvency processes, be that liquidation, administration, company voluntary arrangement or scheme.

We also have an impressive track record in acting for investors and turnaround professionals wishing to buy distressed assets or to fund distressed businesses.

We also offer a bespoke service to company directors in which various teams come together to create tailor-made solutions. We advise on director’s duties, obligations and potential personal liability and, crucially, we can guide you through schemes for business rescue and reconstruction, thus avoiding insolvency consequences. We have successfully acted for individuals facing disqualification, civil and criminal proceedings and offer you the highest levels of commitment and discretion.

Whatever your business involvement, we can help you navigate the complexities and support you to effectively manage your insolvency and wealth protection issues.

The effects of potential insolvency can be complex.

Our team has helped business owners, company directors, entrepreneurs, highly successful media and sports professionals from all over the world manage their business through financial challenges in the most efficient way.

Our recent work has included:
  • Acting for one of two directors in respect of disqualification proceedings brought by the Insolvency Service as a result of the failure of a well-known public relations company. Each director blamed the other for the company’s ultimate failure. Managing the confidentiality of the proceedings was of key importance; they ultimately settled the case on undertakings and the lower bracket
  • Acting for a syndicate of investors in the restructuring and disposal of its investment in the Chatham Maritime Development, comprising of a cinema complex, restaurants and the Dickens World tourist attraction. Liaising with liquidators in regards to the insolvent tourist attraction
  • Advising an Irish investment company specialising in the music festival sector on the acquisition of a majority shareholding from the administrator of a holding company. Following completion of the acquisition, we have continued to work on the matter, dealing with a breach of warranty claims against the co-investor.