Company Turnaround
Is the future of your business at risk?
Many of our clients are victims of circumstance; a key employee has fallen seriously ill, the business has expanded at an unprecedented and unsustainable rate, or a major debtor has failed to pay an account. Even small occurrences can have major implications for a business. When the future looks volatile, your best chance of survival is to seek expert advice from professionals who can work fast to regain stability and ensure your future.
Act quickly and turn your business around
Sometimes companies find themselves on the wrong track. Whether a flawed strategy, management mistakes or uncontrollable glitches have upset the status quo or slowed down the enterprise, financial distress and the threat of insolvency can be an unavoidable outcome.
Experts are in place to support businesses like yours that are in distress; to come in and provide swift, actionable advice that can change your course and the end outcome. With the right lawyer, an expert in the insolvency space, you can swiftly and efficiently make the most out of your circumstance.
What you need to know
Knowledge is king when you are facing insolvency. Insolvency lawyers are experts in the legal consequences that face an insolvent company, or more simply, a company unable to pay its debts.
A company’s day-to-day operation is bound by the law (the Corporations Act), but when it approaches insolvency or becomes insolvent there are even more complex laws that come into play. The future of a distressed company depends upon its ability to navigate the Corporations Act, complex insolvency laws and those around the security of personal property, which can protect acting directors. This means that how bright your future looks often comes down to how bright your lawyer is and the handle they have across multiple complex areas of law.
By making sure you are working with an advisor with excellent technical knowledge of the laws that weigh heavily on your situation will mean you receive swift, practical advice in innately complex situations. RCR Insolvency lawyers are the wealth of information you need to arrive at the best outcome for your circumstance.
The best insolvency lawyers come armed with all the tools, skills and contacts that you need to navigate your way from point A to point B without unnecessary cost and stress.
When your business is in distress and you’re on the brink of insolvency, you’ll want the lawyer you trust to support you from beginning to end. However, sometimes you’ll need additional expertise to support you along the way and you’ll want the person you trust to close the gap between your business requirements and another trustworthy expert.
When it comes down to the crunch, our experienced insolvency lawyers armed with comprehensive industry network can bridge the gap between you and other insolvency practitioners to get the job done. RCR Insolvency are committed to being your partners in business and to making the insolvency process as smooth sailing as it can be.
Reasonable negotiations between debtor and creditor can establish common ground between the two. Common ground can often mean mutual agreement around how the businesses affairs will be dealt with moving forward to ensure the best outcome for all parties.
While there are a full breadth of options available to you, one of the most common is a formal ‘Deed of Company Arrangement’, a tool used by insolvency professionals to reach a commercially viable agreement that satisfies the debtor and creditors of a company in distress.
You can’t backtrack on formal insolvency proceedings, which is why you should explore all possible avenues before jumping to appoint an administrator or liquidator to your business. Effective diagnosis of business issues and identification of viable restructuring pathways can often mean continued business and satisfied creditors.
Directors and business owners are sometimes pushed toward formal insolvency appointments and are not made aware of all options available to them, which often have greater benefits for shareholders, creditors, debtors and other stakeholders alike. There are a host of avenues that can be explored that will keep you out of formal insolvency, including debt/equity swaps, refinancing, invoice financing, negotiations and more.
An experienced insolvency lawyer can advise you in the full breadth of options available to you, so you can move toward the best possible outcome.
This freeze in time means you can rationally consider often competing options for the future of your company. You give yourself time to assess whether the company has any significant chances of survival, and in the case that it does not you have time to seek advice on how to mitigate your risks and losses that may result from a business demise.
Outcomes of Voluntary Administration
- Directors may avoid insolvent trading and protect themselves against breaches of duties or claims that may hold them personally liable for company debts
- The business may effectively reassess, restructure, improve its financial position and return to profitability
- The business has increased opportunity to compromise and negotiate, developing a viable plan to satisfy hungry creditors.
Talk to our team today
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