Companies in financial distress
Companies in financial distress
If a company is in financial distress it is difficult for all parties involved. The entrepreneur has to decide (over and over again) whether or not to continue the business and which creditors may or may not be paid. A restructuring or relaunch may be considered. Perhaps a moratorium can lead to a solution or a private settlement can be offered with the help of the WHOA. Or you want to continue but you are faced with a insolvency petition by a creditor. Can you defend yourself against such a petition?
On the other side creditors are looking for ways to minimize their losses. Can they suspend deliveries? Are they allowed to reclaim delivered items?
There may also be employees who are facing wage arrears. What is their position?
Experienced insolvency lawyers
The court regularly appoints lawyers from our firm as trustees in corporate insolvencies and as administrators in moratoriums. The experience that our lawyers gain in this process is used in advising and guiding our clients. This may be the company that is in dire financial straits, but it may just as well be one of the other parties involved, such as a supplier, a finance company or an employee. A different approach may be necessary for each party involved. After all, the interests of a creditor are essentially different from the interests of, say, an employee or a director. In all cases, this is tailor-made work. A private limited company with dozens of employees, sometimes with several branches, requires a different approach than a general partnership with natural persons as partners.
If you have any questions after reading an article or if you have any other questions in the area of insolvency law, please do not hesitate to contact us. We will be happy to assist you.
More about companies in financial distress
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SPECIALIZED LAWYERS
These are our lawyers who are specialized in this area.
Peter de Graaf
More about companies in financial distress
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Can a cash payment made after the bankruptcy date be reclaimed?
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